Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 192

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 192
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 condition.

Many
of the blockchain applications on large blockchain networks involve the use of “stablecoins,” which are designed to maintain
a constant price related to or based on some other asset or traditional currency because of, for instance, their issuers’ promise
to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury securities) equal to the total value of
stablecoins in circulation. In July 2025, the U.S. President signed into law the “GENIUS Act,” which establishes a federal
framework for “payment stablecoins,” treating them as payment systems, not securities, and mandating fiat-backed reserves,
monthly disclosures, anti-money laundering safeguards, and similar measures. Stablecoins have grown rapidly as a medium of exchange and
store of value, particularly on digital asset trading platforms, and their use as an alternative to digital assets such as bitcoin and
WLD could expand further as rules are promulgated under the GENIUS Act. As of June 30, 2025, two of the seven largest digital assets
by market capitalization were U.S. dollar-pegged stablecoins. If merchants, consumers and decentralized applications choose stablecoins,
the demand for the use case for WLD as a medium of exchange could decrease and, therefore, the value of WLD could decline and there could
be an adverse impact on the value of the Company’s common stock.

51

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During
the three months ended September 30, 2025, the Company issued a total of 178,284,653 shares of common stock and Pre-Funded Warrants to
purchase 6,646,855 shares in connection with the Securities Purchase Agreement dated September 8, 2025 (the “PIPE Transaction”).
The securities were issued to institutional and accredited investors at a purchase price of $1.46 per share (or $1.459 for the Pre-Funded
Warrants), for gross proceeds of approximately $270 million. The issuance was conducted in reliance on Section 4(a)(2) of the Securities
Act and Rule 506 of Regulation D.

On
September 9, 2025, the Company issued Placement Agent Warrants to purchase 3,855,822 shares of common stock to R.F. Lafferty & Co.,
Inc. as compensation for acting as placement agent in the PIPE Transaction. The warrants have