Xalles Holdings Inc (OTC:XALL) Stock Continues to Trend Lower: but Why?
The financial technology sector is all set to grow considerably in the coming years, and naturally, there is interest among investors with regard to the different companies in the sector.
One of the companies that could be looked into at this point in time is Xalles Holdings Inc. (OTC:XALL), which is a leader in the fintech industry and a specialist in financial services solutions and innovative technology spaces. On September 22, the company was in the news after it came up with certain key updates. The company noted that innovation remained the core of its business and had hence decided to transform its business model entirely to RISE.
The company revealed that RISE stood for ‘Roll In, Selected Exit’. The model in question was introduced in August, and since then it has been received positively by companies that Xalles wishes to acquire as well as potential investors. Xalles noted that it had also helped it move forward with many of the deals that were present in its pipeline of acquisitions.
The company went on to note that shareholders could expect a barrage of announcements pertaining to those acquisitions in the upcoming weeks. In order to move forward as a company, Xalles decided to take up a path that involved the undertaking of a major fund-raising campaign.
The campaign would consist of the double strategy of trying to get access to private financing deals and then moving on to a Reg A+ offering. In order to achieve its goals, the company also increased the number of its common shares for the first time since September 2019. The company’s total shares of the common stock went up to 5 billion from 2 billion. Xalles noted that such a move would help the company strengthen its position in the upcoming years.
However, the company also added that it had no plans to go for a reverse split. The company had also divested its interests in Patient Healthcare Solutions Inc. (PHCS) in an amicable transaction. PHCS was returned to its original shareholders after Xalles could not generate the revenues that it had originally anticipated.
On August 15, the company announced its financial results for the second fiscal quarter that ended on June 30, 2023. It was the eighth straight quarter in which Xalles had managed to clock record revenues. The company managed to generate revenues of as much as $4708947 for the quarter, which reflected a sequential rise of 21% from the first quarter.
The net profit generated by the company came in at $728249, which worked out to a sequential rise of 12%. The company commented that it expected the acquisitions that it had made in the 2nd quarter would further boost its financial numbers in the second half of 2023 and beyond. The Chief Executive Officer of Xalles, Thomas Nash, noted in a statement that its unique business model continued to drive the company’s progress. He went on to note that everyone at the company remained committed to generating value for all the shareholders.
