WILMINGTON, Del., June 24, 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 successfully completed the previously disclosed transaction to acquire the majority interest in the assets of SEO Marketing Inc. doing business as “DDS Rank.”
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 and profits in the next few 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 now have a clear path and timeline to profitability, without the need for raising any additional equity capital,” concluded Wells.
About DDS Rank
DDS Rank helps dentists increase their website traffic through search engine optimization and paid advertising. Approximately 91% of the company’s revenues are subscription-based recurring revenue. The company excels at helping dentists improve search engine visibility and web traffic, resulting in more appointments and visits to their clinics. Visit www.ddsrank.com to learn more.
About Onfolio Holdings
Onfolio acquires and manages a diversified portfolio of online businesses. Onfolio acquires business that meet its investment criteria, being that such businesses operate in sectors with long-term growth opportunities, have positive and stable cash flows, face minimal threats of technological or competitive obsolescence and can be managed by our existing team or have strong management teams largely in place. The Company excels at finding acquisition opportunities where the seller has not fully optimized their business, and Onfolio’s experience and skillset allows it to add increased value to these existing businesses. Visit www.onfolio.com for more information.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continues,” “estimates,” “projects,” “intends,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us under the caption “Risk Factors” included in our SEC filings and other risks to which our Company is subject, and various other factors beyond the Company’s control.
Investor Contact
investors@onfolio.com
