With its newly designated Series E Preferred Stock, FOXO Technologies Inc. (NYSE American: FOXO) is refining its financial toolkit for strategic expansion, leveraging a structure that combines investor yield with capital discipline.
A hybrid financial instrument with defined protections
The Series E Cumulative Redeemable Secured Preferred Stock is issued with a $25.00 stated value per share, offering a 2.5% annual cash dividend and a 5.0% annual common stock dividend, both disbursed semi-annually. Crucially, the preferred stock is backed by a security interest in FOXO Acquisition Corporation, a special-purpose entity designed to carry forward the company’s M&A initiatives.
Targeted capital deployment without shareholder dilution
Designed as both acquisition currency and a capital-raising vehicle, the Series E Preferred Stock provides FOXO with a non-dilutive mechanism to finance upcoming deals. According to CEO Seamus Lagan, the company is currently progressing on several previously announced acquisitions and evaluating new targets.
FOXO also intends to list the Series E shares under a separate trading symbol, which could improve market access and create differentiated investment profiles for institutional and retail investors alike.
Yield and protection: an attractive dual proposition
The structure’s combined 7.5% return, via cash and equity, positions it as an attractive yield alternative. Simultaneously, the inclusion of asset-backed security enhances the offering’s risk-adjusted appeal. This hybrid approach caters to income-oriented investors while maintaining long-term upside.
Such financial architecture signals FOXO’s commitment to disciplined growth. By avoiding common equity dilution, the firm aligns capital markets sophistication with shareholder stewardship.
Caution warranted amid strategic execution
Despite the instrument’s favourable structure, the absence of named acquisition targets or defined closing timelines introduces execution risk. Additionally, the semi-annual cash component will require prudent liquidity management.
Regulatory alignment and corporate disclosure
The designation has been formally filed with the Delaware Secretary of State. As clarified under Rule 135 of the U.S. Securities Act of 1933, the announcement does not constitute an offer or solicitation to buy securities and will be governed by appropriate regulatory frameworks upon any future issuance.
Diversified operations across healthcare and biotechnology
FOXO Technologies oversees a diversified portfolio:
- Rennova Community Health, operator of a critical access hospital in Tennessee.
- Myrtle Recovery Centers, a 30-bed behavioural health treatment facility.
- FOXO Labs, its biotech arm focused on healthspan technologies and scientific innovation.
