JanOne to Acquire ALT 5 Sigma Inc., a Leading Next Generation Blockchain Financial Technology Provider

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May 13, 2024, 07:30 ET

ALT 5's transactional processing volume exceeded $1.1 billion in calendar 2023, and over $450 million in Q1 2024

LAS VEGAS, May 13, 2024 /PRNewswire/ -- JanOne Inc. (Nasdaq: JAN) announced today that it has executed a Definitive Agreement to acquire blockchain financial technology provider, ALT 5 Sigma Inc., a Delaware corporation, and each of its wholly-owned subsidiaries. The transaction is anticipated to close the week of May 13th, 2024 and is subject to customary closing conditions and regulatory requirements as applicable.

Launched in 2018, ALT 5 is a fintech that provides next generation blockchain-powered technologies to enable a migration to a new global financial paradigm. ALT 5, through its subsidiaries, offers two main platforms to its customers: "ALT 5 Pay" and "ALT 5 Prime."

ALT 5 Pay is a crypto-currency payment gateway that enables registered and approved global merchants to accept and make crypto-currency payments or to integrate the ALT 5 Pay payment platform into their application or operations using the plugin with WooCommerce and or ALT 5 Pay's checkout widgets and APIs. Merchants have the option to convert to fiat currency (US Dollars, Canadian Dollars, Euros, and British Pounds Sterling) automatically or to receive their payment in digital assets.

ALT 5 Prime is an electronic over-the-counter trading platform, that enables registered and approved customers to buy and sell digital assets. Customers can purchase digital assets with fiat and, equally, can sell digital assets and receive fiat. ALT 5 Prime is available through a browser-based access, mobile phone application named "ALT 5 Pro" that can be downloaded from the Apple App Store, from Google Play, through ALT 5 Prime's FIX API, as well as through Broadridge Financial Solutions' NYFIX gateway for approved customers.

According to Research and Markets.com (1) "The Payment Processing Solutions Market size is estimated to grow from approximately USD 100 Billion in 2023 at a CAGR of 9.5% during the forecast period from 2023 to 2030." In addition the report states, "Technological advancements, including artificial intelligence, machine learning, and blockchain, are revolutionizing the payment processing landscape." (1) Source https://ca.finance.yahoo.com/news/global-payment-processing-solutions-market-121800862.html

"We believe that ALT 5's innovative solutions provide significant competitive advantages in this market and together we can help them continue their growth," said Tony Isaac, President and CEO of JanOne Inc. "The innovative products and services delivered by ALT 5 to its global customers are at the forefront of the payment processing industry and have contributed to reducing risk and eliminating costly credit card charge-backs. In addition, ALT 5 has developed a profitable business that we can assist to rapidly scale globally. With ALt5 as the foundation, we will begin working with the Alt5 team to identify additional opportunities for expansion of the product portfolio, and the scale of the business."

Mr. Andre Beauchesne, President of ALT 5 Sigma Inc., stated, "Since our beginning in 2018, it has been one of our objectives to be a part of publicly traded company and being acquired by JanOne starts a bright new chapter in our growth story." He added, "As we continue to build on our strong foundation, JanOne's management team and public listing will help leverage many opportunities."

Overview of the transaction
At closing, JanOne will issue to the former stockholders of ALT 5 1,799,100 shares of its common stock, which represents approximately 19.9% of JanOne's will issue to the outstanding common stock as of May 10, and (ii) 34,207 shares of its Series B non-convertible, non-redeemable preferred stock. At closing ALT 5 Sigma Inc. and its subsidiaries shall become wholly owned subsidiaries of JanOne.

Additional details about the acquisition can be found on JanOne's website at https://ir.janone.com/sec-filings or in JanOne's filings with the Securities and Exchange Commission at https://www.sec.gov/edgar/browse/?CIK=862861&owner=exclude.

About JanOne Inc. — JanOne is a unique Nasdaq-listed company offering innovative, actionable solutions intended to help end the opioid crisis. JanOne is dedicated to funding resources toward innovation, technology, and education to find a key resolution to the national opioid epidemic, which is one of the deadliest and most widespread in the nation's history. Its drugs in the clinical trial pipeline have shown promise for their innovative targeting of the causes of pain as a strategic option for physicians averse to exposing patients to addictive opioids.

Please visit www.janone.com for additional information.

Forward Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the statements that JAN 101 will treat PAD, that JAN 123 will treat CRPS, the timing of the commencement of clinical trials, that the FDA will permit approval through a 505(b)(2) pathway for JAN 123, that upon approval JAN 101 will immediately disrupt the PAD market, and other statements, including words such as "continue", "expect", "intend", "will", "hope" "should", "would", "may", "potential" and other similar expressions. Such statements reflect JanOne's current view with respect to future events, are subject to risks and uncertainties, and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by JanOne, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause JanOne's actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such factors could include, among others, those detailed in the Company's periodic reports filed with the Securities and Exchange Commission (the "SEC"). Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in JanOne's filings with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and JanOne does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. JanOne cannot assure that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

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SOURCE JanOne Inc.