Immutable Holdings Inc. (CBOE:HOLD; OTCQB:IHLDF) has provided an update covering its digital asset portfolio, capital management activities, strategic review and the resolution of litigation involving a former director.
#HBAR remains the main digital asset holding
The Vancouver-based company said its digital asset portfolio is concentrated in HBAR, the native cryptocurrency of the Hedera network. It also holds smaller residual positions in ETH and USDC, while HBAR represents the substantial majority of its digital asset holdings.
Immutable Holdings said it is assessing the portfolio against market conditions, liquidity requirements and its wider capital allocation priorities. The company noted that digital asset markets have experienced significant volatility associated with macroeconomic conditions, liquidity, investor sentiment and developments across the sector.
#Potential monetisation remains under review
The company said it may decide to monetise some or all of its digital asset holdings. It identified managing market exposure, meeting general corporate and working capital requirements, and maintaining flexibility for strategic opportunities as possible reasons for such transactions.
Immutable Holdings provided no assurance regarding the timing, amount or pricing of any potential transaction.
#Strategic review continues
Immutable Holdings said it is continuing to assess its overall business strategy and opportunities intended to create long-term value for shareholders. The review includes its existing assets and infrastructure, possible business combinations, investments, partnerships and other strategic transactions.
Any assessment remains subject to ongoing review, market conditions, due diligence, regulatory considerations and the availability of suitable opportunities. The company said there can be no assurance that any specific opportunity will lead to a definitive transaction.
#Settlement with former director
The company has entered into an amicable settlement agreement with a former director concerning certain litigation. The terms are confidential, and Immutable Holdings said the agreement was reached without any admission of fault, wrongdoing or liability.
To fully and finally resolve the matter and avoid the continued cost and distraction of litigation, the Corporation has agreed to pay US$250,000 pursuant to the settlement. The agreement provides for all claims asserted in the litigation to be dismissed with prejudice.
Immutable Holdings said it does not intend to issue further public statements about the settlement or disclose additional details. The transaction carries further confidential terms that the company has not set out publicly.
#Company background and stated risks
Immutable Holdings describes itself as a collection of businesses operating within the digital assets ecosystem. Its ventures have covered asset management, NFTs, media and education, including Immutable Asset Management, NFT.com, Immutable Media, 1-800-Bitcoin and HBAR Labs. Jordan Fried founded the company and was a member of the founding team of the Hedera Hashgraph network.
The company cautioned that statements concerning its digital asset portfolio, strategic initiatives, potential transactions and long-term value are forward-looking. It identified risks including changes to applicable laws and regulatory conditions, digital asset volatility and pricing changes, liquidity conditions, digital asset regulation, general economic and capital markets conditions, and stock market volatility.
Immutable Holdings said actual results or events could differ materially from those stated, anticipated or implied in its forward-looking statements. It also said those statements rely on assumptions about market conditions, the availability of strategic opportunities, regulatory requirements and its ability to execute its business objectives. The company does not undertake to publicly update or revise the statements except as required by applicable law.
#Key Takeaways
- Immutable Holdings said HBAR makes up the substantial majority of its digital asset holdings, with smaller residual holdings of ETH and USDC.
- The company may monetise some or all of its digital assets, but gave no assurance on timing, amount or pricing.
- Its strategic review includes potential business combinations, investments, partnerships and other transactions, none of which is assured to become definitive.
- Immutable Holdings agreed to pay US$250,000 under a confidential settlement with a former director, without admitting fault, wrongdoing or liability.
- The settlement provides for dismissal with prejudice of all claims asserted in the litigation.
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