Trump-linked fintech sells core unit after spectacular slide
AI Financial Corp has sold its main operating subsidiary for a $12 million secured promissory note and shares in the buyer, marking a dramatic reversal for a fintech company that surged past a $1 billion market valuation after tying its fortunes to the Trump family’s cryptocurrency venture. The Las Vegas-based company, formerly known as ALT5 Sigma Corp, completed the sale of Quebec-based ALT 5…
AI Financial Corp has sold its primary operating subsidiary, Quebec-based ALT 5 Sigma Canada Inc, to Prime Delta Corp. The transaction includes a $12 million secured promissory note and 11.55 million restricted shares in Prime Delta. The sale marks a significant reversal for the fintech company, which reached a $1 billion valuation after aligning with President Donald Trump’s family’s cryptocurrency venture, World Liberty Financial (WLFI).
Despite the $12 million payout, AI Financial does not receive immediate cash; instead, it will repay $1 million on August 11 and the remaining $11 million through various means starting in August 2027. The deal comes less than a year after ALT5 Sigma raised $750 million by issuing new shares and using $717 million to acquire WLFI tokens, causing its share price to soar and briefly pushing its market capitalization above $1 billion.
However, the company's fortunes have since plummeted, with shares falling to around 75 cents and its balance sheet burdened by WLFI token holdings that have lost substantial value. The name change to AI Financial in April aimed to reposition the company as a broader financial platform, but its struggles intensified amid falling cryptocurrency valuations.
The Nasdaq listing problem emerged as the company's shares traded below the $1 minimum requirement for 30 consecutive days, giving AI Financial until December 28 to regain compliance.
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