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DDS Rank is expected to add more than $310,000 in revenue and generate around $200,000 in earnings before interest, taxes, depreciation and amortization.
WILMINGTON, Del., June 07, 2024 (GLOBE NEWSWIRE) -- Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) (the "Company" or "Onfolio"), a company that acquires and manages a diversified portfolio of online businesses, today announced that it has entered into an agreement to acquire the majority interest in the assets of SEO Marketing Inc. doing business as “DDS Rank.” The company expects the acquisition to close early next week.
The acquisition was made possible with the assistance of Onfolio’s Special Purpose Vehicle “Onfolio Agency SPV LLC,” which is taking a minority interest in the business.
DDS Rank provides dentists with digital marketing services including search-engine optimization, paid advertising, and web design. During 2023, DDS Rank generated approximately $310,000 in revenue and $190,000 in unaudited adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”).
Onfolio believes that within the next 1 or 2 fiscal quarters, it can double the revenue and EBITDA of DDS rank through increased marketing efforts and operational improvements.
“DDS Rank was an obvious acquisition for us. While it is much smaller than our next anticipated acquisition and other acquisition candidates in our pipeline, it has very significant untapped potential,” commented Onfolio CEO Dominic Wells. “We believe we can increase annualized revenue to more than $600,0000 and EBITDA to more than $400,000 in a matter of months.”
On the deal structure, Wells added, “We’re completing this acquisition without investing any cash or common shares from Onfolio Holdings.”
The purchase price is $600,000. Our special purpose vehicle, which continues to raise capital that is not dilutive to Onfolio shareholders, is investing $200,000 in exchange for 34% of DDS Rank. Onfolio will own 66% of DDS Rank in exchange for $200,000 of Series A Preferred Shares and through a secured promissory note for $200,000 due on May 31, 2026.”
The Series A Preferred Shares and secured promissory notes issued by Onfolio pay dividends and interest and are not convertible into Onfolio common shares.
“We have negotiated several acquisitions with structures similar to the DDS Rank transaction and have enough capital to close because of our special purpose vehicle non-dilutive funding,” said Dom Wells, “We expect to close another acquisition this month and achieve profitability near term.”