Clarification and Interpretation Regarding WLFI and ALTS
1. The fundraising entity is ALT5 Sigma, not WLFI
The entire fundraising is done through ALT5 Sigma (NASDAQ: ALTS) as a publicly listed company issuing new shares, not through direct fundraising for the WLFI project. WLFI participates as a buyer in a private placement, providing tokens as consideration. This transaction aims to enable ALT5 Sigma to establish a crypto treasury strategy centered around WLFI tokens, while also providing WLFI with stock market exposure and board influence.
2. ALTS issues 100 million shares sold to institutional investors in the technology and crypto sectors and crypto venture capital funds for cash payment, totaling $750 million
This portion is a Registered Direct Offering, issuing 100 million shares at $7.50 per share, totaling $750 million in cash, with A.G.P./Alliance Global Partners acting as the exclusive placement agent, selling to institutional investors and venture capital funds in the technology and crypto sectors. These funds will be used for acquiring WLFI tokens, business expansion, debt repayment, etc.
3. Another 100 million shares are issued and sold to World Liberty Financial, Inc. for $WLFI
This portion is a Concurrent Private Placement, issuing 100 million shares at $7.50 per share, with a total value of $750 million, but not for cash payment; instead, it is exchanged for an equivalent value of WLFI tokens. After the transaction is completed, WLFI's founders Zach Witkoff (becoming the new chairman of ALT5 Sigma), Eric Trump (joining the board), Zak Folkman (serving as a board observer), etc., will join the management of ALT5 Sigma.
4. Overall result: WLFI strategically controls ALT5 Sigma, while ALT5 Sigma receives $750 million and 3.75 billion WLFI tokens.