SRAX Sells Healthcare / Pharma Data Business SRAXmd

In the US, digital marketing and consumer data management platform SRAX has sold a majority stake in its healthcare and pharmaceutical ad targeting and data business SRAXmd to a group of institutional investors, for an initial $33.5m in cash.

SRAX's machine-learning technology analyzes marketing data to identify brands and content owners' core consumers and their characteristics across marketing channels. The SRAXmd platform serves ads to more than 400,000 healthcare professionals and patients using patent-pending process and technology. Publishers use the platform for audience extension campaigns and re-targeting of their healthcare professional audience.

In addition to the initial $33.5m, SRAX will receive $9m as an earn-out upon reaching gross profit targets by December 31st, 2018, while maintaining a 31% stake in SRAXmd, representing $10m in preferred shares in the new entity. Proceeds of the sale will go toward growing the other SRAX verticals and BIGtoken.com, a platform which enables consumers to own, verify and sell access to their data.

SRAX's CEO and Chairman Christopher Miglino (pictured) stated: 'The capital positions us to continue the development of BigToken.com and our other verticals, which include SRAXshopper, SRAXauto, SRAXfan, and SRAX Social. Management and the Board are exploring strategies to benefit the company and its shareholders such as a share repurchase program and/or a special dividend, thereby creating continued shareholder value'.

Web site: www.srax.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.