SRAX Agrees to Sell SRAXmd for Up to $52.5 Million

Social Reality, Inc., a digital marketing and consumer data management and distribution technology platform company, announced that it signed an asset purchase agreement on July 29, 2018 to sell a controlling interest in its healthcare and pharmaceutical digital advertising product line, SRAXmd, for total consideration of up to $52.5 million. The transaction is expected to close on or about August 7, 2018.

SRAX’s CEO and Chairman Christopher Miglino, stated, “SRAX’s long standing goal has been to leverage our proprietary technology to build and monetize distinct verticals in digital advertising. SRAXmd has consistently demonstrated great opportunity in healthcare and its abilities to operate in a stringent regulatory environment. This transaction gives us the benefit of the long-term growth we have been experiencing in MD, which we believe will be worth significantly more in the future while providing us the capital we need to grow our other verticals and to bring Big Token to market.”

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Terms of the Transaction

On July 29, 2018 management signed an asset purchase agreement to sell all of the assets of the SRAXmd product line to an affiliate of private equity firm Halyard Capital for total consideration of up to $52.5 million. SRAX will receive $33.5 million in cash, $10 million in Class A membership units of Halyard MD, LLC, the parent of the entity acquiring the assets, and an earn-out of up to $9 million upon the buyer achieving certain gross profit thresholds by December 31, 2018. The transaction is expected to close on or about August 7, 2018, subject to customary closing conditions.

More information regarding the transaction can be found in the Form 8-K to be filed by the company with the Securities and Exchange Commission.

Advisors

The company was assisted by Chardan Capital Markets and Noble Capital Markets, both of which acted as financial agents for the company. The company was represented by Silvestre Law Group, P.C. in the transaction.

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