NEW YORK - Nixxy, Inc. (NASDAQ:NIXX) announced strategic steps in its expansion plan, including the acquisition of JustGot2HaveIt, Inc. (JG) and the upcoming spin-off of CognoGroup. The record date for the CognoGroup spin-off is set for November 15, 2024, with only shareholders of record eligible for the distribution of shares. The payable date for this transaction is expected in January 2025.
Nixxy's acquisition of JG aligns with its aim to modernize businesses through digital transformation. JG, a player in the $24.5 billion wholesale gifts market, is poised for an efficiency boost with Nixxy's introduction of advanced order management systems, automated platforms, online marketplaces, and AI-driven processes. Preliminary projections for JG's 2024 revenue exceed $10 million, with a gross profit surpassing $4 million.
The closing of the JG acquisition is contingent upon satisfactory due diligence and regulatory approvals, with an anticipated completion in January 2025. This move is part of Nixxy's broader strategy to target an enterprise value of over $1 billion within the next 36 months, focusing on sectors where technology can significantly enhance operations.
Additionally, Nixxy has secured a global exclusive licensing agreement with GoLogiq, Inc. for the use of Radix AI, a platform designed to help small businesses optimize AI for various business processes.
The company's growth strategy emphasizes acquisitions of businesses with revenues between $10 million and $100 million and high gross profit margins. Nixxy's technology focus and industry-specific targeting are aimed at disrupting traditional business models and unlocking growth opportunities.
Investors are advised that statements in this press release, including those regarding the company's business and acquisition strategies, spin-out transactions, and market opportunities, are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially.
This information is based on a press release statement, and investors should not place undue reliance on these forward-looking statements or third-party data. The company disclaims any obligation to update or revise any forward-looking statements, except as required by law.
In other recent news, Nixxy, Inc. has announced a series of strategic moves in a bid to streamline operations and increase shareholder value. The company is advancing with the spin-off of Atlantic Energy Solutions into a new entity called CognoGroup, which will focus on AI-driven projects across various sectors. Nixxy also plans to acquire a privately-held wholesale gifts business projected to generate a net revenue of $10 million in 2024.
In addition, Nixxy is targeting an enterprise value of over $1 billion within the next 36 months, supported by a global exclusive licensing agreement with GoLogiq, Inc. for the use of the Radix AI platform. The company has sold its website to Job Mobz, Inc. and repaid its outstanding senior debt by issuing 720,000 shares of common stock to a private investor.
ZK International Group Co., Ltd. made an initial investment in Nixxy, acquiring 1,749,975 shares at $1.00 per share. These recent developments are part of Nixxy's ongoing transition and restructuring efforts aimed at optimizing its services and delivering value to stakeholders and investors.
InvestingPro Insights
As Nixxy, Inc. (NASDAQ:NIXX) embarks on its ambitious expansion plan, recent data from InvestingPro sheds light on the company's current financial position and market performance. Despite the optimistic outlook presented in the company's strategic moves, InvestingPro data reveals that Nixxy is not currently profitable, with a negative gross profit of $0.1 million in the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip indicating that the company "suffers from weak gross profit margins."
However, the market seems to be responding positively to Nixxy's growth strategy. InvestingPro data shows a remarkable 135.77% price total return over the past year, with a strong 85.9% return in the last six months alone. This upward trend is reflected in another InvestingPro Tip, which notes a "strong return over the last three months."
It's worth noting that while Nixxy's stock has shown significant recent gains, the company's financials present some challenges. The revenue for the last twelve months as of Q2 2024 stands at just $0.72 million, with a concerning revenue growth decline of -93.81% over the same period. This stark contrast between stock performance and financial metrics underscores the speculative nature of Nixxy's current valuation.
For investors considering Nixxy's potential, it's crucial to weigh the company's ambitious growth plans against its current financial realities. InvestingPro offers 15 additional tips for NIXX, providing a more comprehensive analysis for those looking to delve deeper into the company's prospects.
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