Eightco Holdings Inc. (OCTO) shares are experiencing a significant surge after the company delivered an update to shareholders outlining its impressive achievements in 2024 and its ambitious plans for 2025. The company has significantly strengthened its financial position, demonstrating a commitment to shareholder value and future growth.
In 2024, Eightco achieved a major milestone by eliminating $5.4 million in convertible notes, a move that boosted shareholder equity by a substantial $23 million. Furthermore, the company canceled 5.8 million dilutive shares tied to warrants and convertible securities, further solidifying its financial stability. These strategic actions, alongside several one-time accounting adjustments, have resulted in improved financial performance, with the company’s gross profit margin increasing to 22% in the first six months of 2024, compared to 12% in the same period last year. Notably, Selling, General, and Administrative (SG&A) expenses saw a 23% reduction, dropping to $6.9 million from $9 million in the previous year.
These positive developments have allowed Eightco to regain compliance with two critical NASDAQ requirements, as announced on Tuesday. Looking ahead, the company is actively seeking non-dilutive senior debt financing to replace capital previously used to repay dilutive convertible notes in early 2024. This proactive approach demonstrates the company’s focus on sustainable growth and minimizing future dilution.
For 2025, Eightco has set ambitious goals, aiming for $100 million in revenue and positive EBITDA. This confidence stems from strong inbound demand for the company’s services and the scalable nature of its Forever 8 operations.
Paul Vassilakos, CEO of Eightco and President of Forever 8, expressed his enthusiasm for the company’s future, stating, “The company is excited to focus on prioritizing the Forever 8 business to deliver growth and shareholder value through 2025.” He added, “With regaining compliance with the NASDAQ rules behind us and a significantly improved balance sheet, we believe 2025 has the potential to be our best year since our inception in 2020.”
The market’s response to these announcements has been overwhelmingly positive, with OCTO shares closing up a staggering 72% at $4.29 on Wednesday. This significant price action reflects investor confidence in the company’s financial strength and its potential for future growth.
