RAMAT GAN, ISRAEL – XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB), an IP portfolio company, today announced the acquisition of THE SOCIAL PROXY Ltd., an AI web data company. The transaction, which involves XTL acquiring all issued and outstanding share capital of Social Proxy, includes the issuance of ADSs representing 44.6% of XTL's share capital and a payment of $430,000 to Social Proxy shareholders.
Social Proxy, specializing in ethical, IP-based data extraction for AI and BI applications, will become a fully owned subsidiary of XTL. The deal also grants Social Proxy shareholders the right to appoint two directors to XTL's board.
To facilitate this acquisition, XTL secured $1.5 million through a private placement approved by shareholders on April 30th. The closing of this private placement is contingent upon standard conditions and the finalization of the acquisition.
Shlomo Shalev, CEO of XTL, expressed enthusiasm for the addition of Social Proxy to their portfolio, citing its potential to add significant value to the company and its shareholders. Tal Kinger, CEO of Social Proxy, also conveyed optimism about the growth and value creation that the partnership with XTL is expected to drive.
XTL, which holds IP for the treatment of Lupus and Sjögren’s Syndrome, is actively seeking to expand its asset base with high-potential IP assets. The company is listed on both the Nasdaq Capital Market and the Tel Aviv Stock Exchange.
This strategic move is part of XTL's broader effort to enhance its asset portfolio and capitalize on the growing AI web data market. The acquisition is subject to customary closing conditions, including shareholder approval and potentially necessary government or third-party approvals.
The information regarding this acquisition is based on a press release statement from XTL Biopharmaceuticals Ltd.
In other recent news, XTL Biopharmaceuticals has announced plans to acquire The Social Proxy Ltd., a web data AI firm, as a strategic move to strengthen its asset portfolio with AI and business intelligence applications. The terms of the acquisition include XTL issuing shares amounting to 44.6% of its post-transaction capital and a payment of $430,000 to Social Proxy shareholders. Furthermore, Social Proxy shareholders stand to receive warrants upon achieving certain financial milestones within the next three years.
To facilitate this acquisition, XTL has raised a $1.5 million investment via a private placement, offering investors units of one American Depositary Share (ADS) and one warrant, exercisable at $1.20 each within a five-year timeframe. The deal, still subject to customary closing conditions, including due diligence, shareholder approval, and potential government or third-party approvals, will result in Social Proxy becoming a wholly-owned subsidiary of XTL.
Both Shlomo Shalev, CEO of XTL, and Tal Kinger, CEO of The Social Proxy, have expressed their confidence in the value and growth potential this acquisition will bring to their respective companies. These are the latest developments in XTL's ongoing strategy to acquire additional IP-based assets.
InvestingPro Insights
As XTL Biopharmaceuticals Ltd. (NASDAQ:XTLB) embraces growth through the acquisition of THE SOCIAL PROXY Ltd., investors may find the company's financial health and market performance to be of particular interest. XTL Biopharmaceuticals, with its strategic focus on expanding its asset base, holds a market capitalization of $12.67 million and has shown a remarkable three-month price total return of 176.95%, signaling a strong short-term uptick in investor confidence.
One of the notable InvestingPro Tips for XTL is the company's ability to hold more cash than debt on its balance sheet, suggesting a solid financial position that could support its growth initiatives. Additionally, analysts forecast that XTL will turn profitable this year, which aligns with the company's optimistic outlook following the recent acquisition.
Investors considering XTL's stock should note its high price volatility, which may reflect the dynamic nature of the biopharmaceutical industry and the company's current growth phase. For those seeking a deeper dive into the company's performance and potential, InvestingPro offers a total of 11 InvestingPro Tips for XTL, which can be accessed by visiting https://www.investing.com/pro/XTLB. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date set for July 23, 2024, and a recent price close of $2.52, potential and current shareholders can look forward to understanding how the integration of Social Proxy will impact XTL's financial outcomes and market standing in the near future.
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