Onfolio's Strategic Vision: Preferred Share Raise & Acquisition Strategy

At Onfolio, our overarching strategy revolves around smart and efficient capital allocation. Our primary goal is to continue acquiring businesses, and we're committed to doing so without diluting our equity. We firmly believe that we can secure financing with a cost of capital below 15%, and anticipate returns on investment (ROI) exceeding 25% from these acquisitions. Ultimately, at scale, this approach should yield substantial free cash flow, amounting to millions of dollars.

Our target acquisitions typically consist of internet-based businesses generating $500,000 to $2 million in EBITDA. This niche represents a unique opportunity, often overlooked by individual investors due to its size, yet perceived as too modest for many institutional players. With a combined experience of over 70 years in managing these types of businesses, our team is exceptionally qualified to navigate this sector effectively.

At a high level, Onfolio's core mission is to acquire and retain profitable online businesses, integrating them into our portfolio, and continually reinvesting cash flows for organic growth and additional acquisitions. But what is the operational blueprint that drives our strategy? Here's an inside look into the heart of our approach and the mechanisms of value creation:

A) High-Quality Businesses: We focus on acquiring high-quality businesses that offer online services, digital products, online education, and software. Our intention is to hold these businesses for the long term.

B) Key Criteria: We seek businesses with recurring revenues, asset-light operations, digital marketing and operations as core differentiators, and a presence in sectors with promising growth prospects. We actively avoid unprofitable enterprises, lumpy revenue profiles, or unproven business models.

Our potential acquisition pipeline is vast, with numerous businesses aligning with our criteria and collectively valued at many multiples of our market capitalization. To fund these strategic acquisitions, we've initiated the offering of up to 400,000 shares of our Series A Preferred Shares at $25 per share, with a total offering amount of $10 million. To date, we've successfully secured over one million dollars in non-dilutive funding from Series A Preferred Shares and promissory notes.

Dominic Wells, our Chief Executive Officer, reaffirmed our commitment to raising funds for acquisitions and extending the offer of Series A Preferred Shares. This offering is exclusively available to accredited investors in accordance with Regulation D, Rule 506(c) under the Securities Act of 1933, as amended. While general solicitation is permitted under these offerings, purchasers must meet specific Securities and Exchange Commission (SEC) verification requirements to validate their "accredited investor" status. The net proceeds from this offering will be dedicated to acquisitions and general corporate needs.

Our Series A Preferred Shares take precedence over common stock shares concerning dividends, liquidation, and dissolution. Each share of Series A Preferred carries a 12% annual cumulative, non-compounding dividend based on the $25 liquidation value of the shares, payable quarterly. Furthermore, these shares are redeemable at the Company's discretion, starting from January 1, 2026, at a price equivalent to the purchase price ($25.00 per share) plus accrued dividends.

In essence, Onfolio's strategic vision is a blend of prudent financial planning, calculated acquisitions, and an unyielding commitment to delivering value to our shareholders. We're poised to grow sustainably into the foreseeable future, with the objective of securing and retaining high-quality businesses that align with the company's vision and criteria.