$23M Business Swapped for $1M Cash Amid Crypto Balance Sheet Woes

AI Financial Corp.'s recent deal to swap ALT5 Sigma Canada for a secured note and restricted shares has shed light on the dire state of crypto balance sheets. The company received $12 million in a secured promissory note and 11,551,750 restricted Prime Delta shares in exchange for its subsidiary.

Under the terms of the deal, Prime Delta must pay the first $1 million of note principal by August 11, with the remaining $11 million to be paid through post-closing equity financings. If those payments do not retire the balance, four annual installments of $2.75 million will begin in August 2027.

The deal is notable for exchanging an operating subsidiary for mostly deferred consideration rather than cash at closing. ALT5 Sigma Canada generated $23.5 million in revenue and a $3.3 million net loss in 2025, after recording $15.5 million in revenue and a $600,000 profit in 2024.

Meanwhile, AI Financial's financial position remains precarious, with the company reporting a $271.3 million loss from continuing operations and a working-capital deficit. The sale creates a near-term claim on $1 million but leaves most of the note dependent on future financing proceeds or later installments.