Forever 8 Fund, LLC is anestablished e-commerce finance player thathas seen consistent growth over thepast 18 months
Cryptyde, announced that it has executed an agreement to acquire all of the membership interests of Forever 8 Fund, LLC, an e-commerce fintech company (“Forever 8”), for up to $56.4 million through a combination of equity, convertible notes and debt assumption, along with a further $37 million in contingent cash or equity consideration. The transaction stands to bring Cryptyde significant revenue in the back half of 2022 and provide a stable foundation for the future.
Forever 8 provides funding solutions for e-commerce businesses which sell on Amazon, Shopify and other leading online platforms. Forever 8 uses proprietary technology to review product sales data and determine funding potential for online retail entrepreneurs around the world. Forever 8 has built a proven, proprietary funding platform that is scalable in a $4.9 trillion per year market according to Statista. On Amazon alone, there are over 1.9 million third party sellers.
“Forever 8 fills a crucial need for anyone selling products on the internet. They have proven there is a demand for their financing model with impressive growth over the past 18 months,” said Cryptyde President and CEO, Brian McFadden. “This is a phenomenal opportunity for us as Cryptyde begins to develop and deploy its core suite of products that will help power the future of Web3.”
By using a decentralized, SKU-based funding model to provide funding for e-commerce sellers globally, Forever 8’s process is entirely automated and does not require a personal guarantee, credit check or traditional lending requirements. Forever 8’s unique approach directly purchases inventory on its customers’ behalf, applies a mark-up and collects the revenue as the products are sold. Cryptyde’s roadmap is expected to allow Forever 8’s core business to scale, while also expanding out into new Web3 funding opportunities.
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“Cryptyde’s vision for how people will buy and sell goods and services on the internet is extremely innovative,” said Forever 8 Co-Founder, Paul Vassilakos. “The Cryptyde team has laid out a distinct roadmap, including tokenized funding and smart contract applications, to complement our technology that harnesses the power of the blockchain to improve e-commerce results and empower the entrepreneur.”
Consideration to be provided by Cryptyde consists of the following: (i) up to $21.5 million paid in cash or equity with a maximum share issuance of 10.75 million shares, (ii) $27.5 million paid in the form of 3-year convertible notes, (iii) $7.4 million in assumed debt obligations and (iv) the right to receive up to an additional $37.0 million of contingent cash or equity consideration with a maximum share issuance of 18. 5 million shares upon the achievement of certain earnout milestones.
The additional cash or equity consideration is contingent upon the achievement of the following three earnout milestones: up to $15.0 million of additional cash or equity consideration if Forever 8 achieves $115 million of cumulative collected revenue by August 31, 2025; up to an additional $12.0 million of cash or equity consideration if Forever 8 achieves $165 million of cumulative collected revenue by February 28, 2026; and up to an additional $10.0 million of cash or equity consideration if Forever 8 achieves $210 million of cumulative collected revenue by August 31, 2026.
The transaction is expected to be consummated in the third quarter or early fourth quarter of 2022 after the satisfaction of certain customary closing conditions. Additional information on the transaction can be found in a Current Report on Form 8-K to be filed by Cryptyde with the Securities and Exchange Commission.
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