ALT5 Sigma Corporation Signs Final Agreement for $1.5 Billion Fundraising
Financial technology company ALT5 Sigma Corporation, listed on the Nasdaq exchange, announced on Monday that it has signed a final agreement to combine a registered direct offering with a private placement, issuing and selling up to 200 million shares of common stock (or equivalent common stock alternative securities) at a price of $7.50 per share to launch the $WLFI financial strategy, with total fundraising expected to be approximately $1.5 billion.
According to the press release, the transaction is expected to be completed around August 12. ALT5 Sigma plans to use the funds raised to purchase the native token WLFI of the decentralized finance protocol World Liberty Financial and establish cryptocurrency financial reserve operations, expecting to hold approximately 7.5% of the total supply of WLFI tokens. Other uses of funds include addressing existing litigation, repaying existing debt, funding the company’s ongoing business operations, and serving as working capital and for general corporate purposes.
World Liberty Financial was co-founded by the three sons of U.S. President Donald Trump. The protocol is developing a lending platform and has issued the USD stablecoin, USD1. ALT5 Sigma stated that World Liberty Financial is the primary investor in the private placement, providing consideration in the form of WLFI tokens, with participation from several of the largest institutional investors globally and well-known cryptocurrency companies.
ALT5 Sigma also announced that World Liberty Financial co-founder and CEO Zach Witkoff will serve as the company’s chairman; Donald Trump’s second son, Eric Trump, will become a company director; World Liberty Financial co-founder and COO Zak Folkman will serve as a board observer; and Matt Morgan will take on the role of Chief Investment Officer.
Following the announcement, ALT5 Sigma’s stock price (ticker: ALTS) rose more than 110% in pre-market trading but subsequently fell sharply, closing at $8.13 per share before the press deadline.