- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
NXT-ID Unveils Spin-off Entity
Nxt-ID says the new company will have an investment commitment of US$6 million to fund its operations and will apply to list on the NASDAQ.
Nxt-ID (NASDAQ:NXTD) announced on Thursday (October 18) the planned spin-off entity of its payments, authentication and credential management business, called PartX.
The division, called PartX, was initially announced by Nxt-ID in September. Nxt-ID believes the entity will “unlock the true value of its payments and healthcare businesses.”
Nxt-ID said that the new company will have an investment commitment of US$6 million to fund its operations and that the company will apply for listing on NASDAQ.
Nxt-ID shareholders who own its common shares as of the October 15 dividend date will own shares of both the companies upon completion of the transaction.
The deal, which is subjected to a variety of factors including the final approval of Nxt-ID’s board and the NASDAQ, is expected to be completed by November 15.
According to the release, PartX’s name is inspired by the inventor of Tinkertoy, Charles Pajeau and his patent ‘Part W.’
“PartX is the evolution of Pajeau’s vision – technology platforms and products that connect people to devices, and devices to ecosystems,” Michael Orlando, COO of Nxt-ID, said in the release. “The company will facilitate connected commerce, making digital transactions secure, frictionless and personalized.”
Nxt-ID said that the new company will include the assets acquired in a May 2017 business combination with Fit Pay along with the credential management assets that the company developed since inception.
Gino Pereira, CEO of Nxt-ID, said in September’s release that the company’s businesses are witnessing significant commercial opportunities that requires a dedicated focus.
“We believe the new structure will provide current and potential shareholders with two attractive investment options that may be more closely aligned with their respective investment objectives,” Pereira said. “It further demonstrates our commitment to creating long-term value for our shareholders.”
While Orlando and Pereira will serve on the boards of both companies, Orlando will be the CEO of PartX.
The company further clarified that it will distribute the shares of the newly created company to its shareholders through the execution of a spin-off which it believes will qualify as a tax free distribution.
Following the announcement on Thursday, shares of Nxt-ID were down 6.19 percent and closed the trading session at US$1.06. The company’s shares are down 25 percent over a one month period and 69 percentdown year-to-date.
Nxt-ID has a “Strong Sell” ranking on TradingView with 16 verticals against, nine neutral and one in favor. However, the stock has a “Moderate Buy” ranking on TipRanks with an analyst target price of US$4 based on one analyst recommendation.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.