EASTON, PA - Eightco Holdings Inc. (NASDAQ: OCTO), a company focused on e-commerce ecosystem technologies, announced today the appointment of Paul N. Vassilakos as the Executive Chairman and Chief Executive Officer. Kevin O'Donnell, the former Executive Chairman and interim CEO, will continue to serve on the Board of Directors, while Brian McFadden will resign from the Board.
Vassilakos, who co-founded Forever 8 Fund, LLC, Eightco's largest subsidiary, brings extensive experience in public markets and a history of leadership roles to his new position. His past includes founding Petrina Advisors, Inc., where he provided advisory services to companies preparing to list on national exchanges.
The appointment coincides with an amendment to the financial terms related to the acquisition of Forever 8 by Eightco in October 2022. The former owners of Forever 8, including Vassilakos, have agreed to cancel approximately $3.0 million in accrued interest on notes and convert around $1.1 million of accrued interest into 1.4 million shares of Eightco common stock. Additionally, interest and payments on the notes are deferred until October 30, 2024.
O'Donnell expressed confidence in Vassilakos's ability to lead the company towards profitability, citing his intimate knowledge of Forever 8 and experience in public markets. Vassilakos himself expressed enthusiasm for his new role, emphasizing Forever 8's potential to thrive in the evolving e-commerce landscape and Eightco's focus on reducing ongoing costs.
Eightco's portfolio includes Forever 8, an inventory management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of manufacturing and logistical solutions. The company aims to expand its technology solutions through strategic acquisitions, driving growth and value for shareholders.
The information in this article is based on a press release statement.
InvestingPro Insights
Eightco Holdings Inc. (NASDAQ: OCTO) has recently made strategic leadership changes that could potentially influence the company's future performance. With the appointment of Paul N. Vassilakos as the Executive Chairman and CEO, the company is poised to leverage his extensive experience in the public markets. However, it's important for investors to consider the company's current financial health and market performance when evaluating its prospects.
InvestingPro Data metrics reveal that Eightco has a market capitalization of $3.86 million and a negative P/E ratio of -0.017, reflecting the company's challenges in generating positive earnings. The company's revenue has seen a significant increase, with the last twelve months as of Q3 2023 showing a growth of 324.21%. Despite this impressive growth in revenue, Eightco's gross profit margin remains low at 9.93%, indicating potential inefficiencies in cost management.
An InvestingPro Tip highlights that Eightco operates with a significant debt burden, which is a critical factor for investors to consider, especially given the company's recent financial restructuring related to the acquisition of Forever 8. Another tip points out that the company has been quickly burning through cash, which could be a concern for maintaining operations and funding future growth.
For investors looking to delve deeper into Eightco's financials and performance metrics, there are additional InvestingPro Tips available. These tips can provide further insights into the company's valuation, cash flow, and profitability. To access these tips and make an informed investment decision, visit https://www.investing.com/pro/OCTO and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors should note that there are 13 additional InvestingPro Tips listed for Eightco, which can provide a comprehensive analysis of the company's financial standing and market potential. These tips, coupled with real-time data and metrics, can be instrumental in crafting a well-informed investment strategy.
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