- SRAX sold its pharmaceutical arm, SRAXmd, and it continues to invest in its flourishing BIGtoken platform
- Major brands Kraft and Sun-Maid launched programs within the BIGtoken platform
- SRAX continues toward its goal of developing the largest, most valuable opted-in data set worldwide
With a platform of 16 million members that continues to grow and some of the largest consumer packaged goods brands in the country embracing SRAX Inc.’s (NASDAQ: SRAX) BIGtoken platform, the company’s third-quarter achievements are significant indicators toward attaining its goal of building the largest and most valuable opted-in data set in the world.
On the cusp of having sold its pharmaceutical arm, SRAXmd, to a group of institutional investors for $43 million (http://nnw.fm/u6VHH), SRAX has proven that it can build value in its verticals in the past. The company utilized this profit to invest in its BIGtoken platform technology, clear its balance sheet of $12 million in debt and payables, and buy back over 700,000 shares. Additionally, SRAX retained a 31 percent ownership stake in SRAXmd at the close of the transaction, representing $10 million in preferred shares in the new entity, which is not represented on its balance sheet. This asset alone could represent a significant portion of today’s market cap of the company.
Now, it looks like SRAX’s investment in its opted-in database, BIGtoken, could not be in a better position to capitalize on the political landscape around privacy and the use of personal data. Laws are taking effect around the world that impact the way marketers are allowed to use personal data, causing those marketers to take a long hard look at the sources of their data. The SRAX solution of partnering with consumers to monetize their data could not be timelier. Traditional data providers are struggling to obtain the needed consent from consumers to keep the marketing machine going. Meanwhile, SRAX’s BIGtoken data set is positioned to become one of the most valuable consumer set on the market and could drive long term revenue value for the company. With major consumer packaged goods brands Kraft and Sun-Maid recently launching programs within the platform, BIGtoken is driving revenue.
SRAX recently reported that it had $2.5 million in cash before receiving a $5.5 million investment from existing investors. Investors should keep in mind that SRAX’s numbers for last year included revenue from the SRAXmd business, which was sold in August of last year. Though the sale of the company affected its year-over-year revenue, SRAX continues to see year-over-year and quarter-over-quarter growth without the SRAXmd business.
“We continue to build our data assets through increasing adoption of our verticals and BIGtoken,” SRAX CEO and Founder Christopher Miglino stated in a news release (http://nnw.fm/UfM91). “These proprietary platforms are positioned to generate long-term revenue and value, while building one of the most valuable data sets in the world.”
SRAX’s technology unlocks data to reveal brands’ core consumers and their characteristics across marketing channels. SRAX’s tools deliver a digital competitive advantage for brands in the CPG, automotive, investor relations, luxury and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform.
For more information, visit the company’s website at www.SRAX.com
NOTE TO INVESTORS: The latest news and updates relating to SRAX are available in the company’s newsroom at http://nnw.fm/SRAX
About NetworkNewsWire
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
[email protected]