During the current trading session, the shares of XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB) are experiencing a notable surge of 98.06%, culminating in a valuation of $2.04. This remarkable upswing in XTLB shares is directly attributable to a recent strategic acquisition move.
XTL Biopharmaceuticals (XTLB) announced today its formal agreement with THE SOCIAL PROXY Ltd., delineated within a binding term sheet. The Social Proxy stands as an avant-garde entity specializing in web data solutions, crafting and empowering a distinctive ethical, IP-centric proxy and data extraction platform tailored for AI & BI Applications at scale.
Pursuant to the Term Sheet, XTLB intends to acquire the entirety of Social Proxy's issued and outstanding share capital on a fully diluted basis. This acquisition will be executed through a private placement, wherein the Company will issue a certain number of ADS's representing 44.6% of its issued and outstanding share capital post-issuance, alongside a payment of US$430,000 to Social Proxy's shareholders.
Furthermore, as a component of the Transaction, Social Proxy's shareholders will receive additional warrants, exercisable upon meeting specific financial benchmarks within a three-year timeframe subsequent to the Transaction's closure. As part of XTL Biopharmaceuticals' overarching strategy, the proposed transaction complements its asset portfolio with high growth prospects.
A private placement commitment of US$1,500,000 has been obtained by the Company to strengthen its financial position and expedite the transaction. In exchange for their investment, investors will receive 1,500,000 units, each consisting of one ADS and one warrant that can be exercised for five years after issuance at a price of US$1.20 per warrant.
Due to the involvement of Mr. Alexander Rabinovich, a director and 23.5% shareholder of the company, the investment is subject to shareholder approval. Following the acquisition, Social Proxy will operate as a fully-owned subsidiary of XTL Biopharmaceuticals, and its shareholders will have the authority to select two of the company's possible seven board of directors representatives.