Know Labs, Inc. a health-tech company known for its non-invasive monitoring devices, has signed a deal to sell a controlling interest to Goldeneye 1995 LLC, an affiliate of fintech investor Greg Kidd. The deal includes 1,000 Bitcoin and $12 to $15 million in cash.
The deal is expected to close in the third quarter of 2025, pending shareholder approval and the fulfillment of standard conditions. According to the announcement, the funds will be used to repay Know Labs’ debts, repurchase its preferred stock, and for working capital.
The shares will be sold at $0.335 each, which is less than the present trading price of $0.51. Additionally, the number of shares issued will be calculated based on the total value of Bitcoin and cash divided by the share price.
Greg Kidd will take over as Chief Executive Officer and Chairman of the Board once the deal is closed. Kidd is a former Chief Risk Officer at Ripple and an early investor in Twitter, Square, and Coinbase. He also has a Bitcoin yield strategy, which will now move into the public markets through Know Labs.
“I’m thrilled to deploy a Bitcoin treasury strategy with the support of a forward-looking organization like Know Labs at a time when market and regulatory conditions are particularly favorable,” said Kidd in the company’s announcement. The Bitcoin holdings will become the main asset on the company’s balance sheet.
At closing, Bitcoin is expected to make up 82% of the company’s projected $128 million market cap, based on a price of $105,000 per BTC. Know Labs will track how much the market is willing to pay for its Bitcoin compared to the company’s stock price using the multiple of net asset value (mNAV). The entry mNAV multiple is estimated at 1.22x.
Ron Erickson, the Founder, will assume the role of Vice Chairman and President of a newly created research-oriented division. His base salary will be reduced from $500,000 to $375,000. Peter Conley will automatically step down upon closing of the transaction.
Know Labs’ board unanimously approved the deal. Shareholders holding about 37% of voting power have already agreed to support the transaction. Cohen & Company Capital Markets is advising on the deal, with legal support from Lowenstein Sandler LLP and Sichenzia Ross Ference Carmel LLP.
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