LAS VEGAS - JanOne Inc. (NASDAQ: JAN), a company involved in both fintech and healthcare, has announced a strategic shift to prioritize its fintech operations and rebrand itself as ALT5 Sigma Corporation. This move follows the board's approval to review and potentially monetize the company's biotech assets.
The decision comes after the acquisition of ALT5 Sigma, a fintech firm specializing in blockchain technology, in May. JanOne's CEO, Tony Isaac, highlighted the significant growth in opportunities for ALT5 since the acquisition, driving the company to concentrate on this area for future revenue.
JanOne is exploring options for its biotech assets, which could involve spin-offs, strategic alliances, or sales. The company's biotech division was previously recognized for receiving a US patent for a low-dose naltrexone formulation, Jan123, aimed at treating pain.
The name change to ALT5 Sigma Corporation is accompanied by a ticker symbol change from "JAN" to "ALTS", reflecting the new strategic direction. The timing for these changes will be announced in a future press release.
ALT5 Sigma, acquired by JanOne, operates ALT5 Pay, a cryptocurrency payment gateway, and ALT5 Prime, an over-the-counter trading platform for digital assets. In 2023, the company processed over $1.2 billion in cryptocurrency transactions.
Vay Tham, Chief Revenue Officer at JanOne and President of ALT5 Sigma, Inc., emphasized the potential for both the fintech and biotech businesses to reach their market potential independently.
The strategic realignment is part of JanOne's broader efforts to increase stockholder value, leveraging its innovative leadership and agility in responding to market opportunities.
JanOne, which became part of the Russell Microcap Index on June 28, 2024, has been committed to addressing the opioid crisis through its biotech ventures while also advancing fintech solutions through ALT5 Sigma.
This strategic update is based on a press release statement from JanOne Inc.
In other recent news, JanOne Inc. has made significant strides in the fintech sector. The firm's subsidiary, ALT5 Sigma, launched the "ALT5 Settlement Platform," a cryptocurrency-based payment system for digital content creators.
The platform, which has seen its settlement volume grow to over $7 million per month, allows digital platforms to pay content creators in various cryptocurrencies and provides the ability to load a prepaid VISA card with cryptocurrency funds.
Furthermore, JanOne has expanded its portfolio by acquiring ALT 5 Sigma Inc., a provider of blockchain financial technology. This acquisition has brought ALT 5 Sigma and its subsidiaries under the JanOne umbrella as wholly-owned entities, further strengthening the firm's fintech offerings. The company's inclusion in the Russell Microcap® Index is another significant development, expected to increase its visibility among investment managers and institutional investors.
These recent developments indicate a strategic focus on enhancing JanOne's fintech portfolio while continuing its mission in the healthcare sector. The acquisition of ALT 5 Sigma and the launch of the ALT5 Settlement Platform are key steps in this direction, offering advanced blockchain technologies for financial transactions involving digital instruments.
InvestingPro Insights
In the wake of JanOne Inc.'s (NASDAQ: JAN) strategic pivot to focus on its fintech operations under the new banner of ALT5 Sigma Corporation, recent metrics from InvestingPro paint a detailed picture of the company's financial landscape.
According to InvestingPro Data, JanOne's market capitalization stands at 22.29 million USD, reflecting the size of the company in the current market. Despite a notable six-month price total return of 253.7%, the company has experienced a significant one-month price total return drop of -28.73%, indicating recent turbulence in its stock price.
InvestingPro Tips suggest that JanOne's stock is currently in oversold territory, which could interest investors looking for potential buying opportunities. Moreover, the stock's recent performance has been marked by high volatility, a factor that traders might consider when evaluating the risks associated with the stock.
For those looking to delve deeper into JanOne's financials and future prospects, there are more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/JAN. Additionally, investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing even more insights to inform their investment decisions.
With the company not profitable over the last twelve months and facing weak gross profit margins, the strategic shift to prioritize fintech operations could be a pivotal move to steer the company towards a more profitable future. As JanOne transitions to ALT5 Sigma Corporation, investors will be closely monitoring how these changes impact the company's financial health and market performance.
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