Neighborhood Intelligence, formerly Bed Bath & Beyond, announced it is exploring strategic alternatives for its blockchain business, including partnerships and alliances.
In addition, the company announced that Nasdaq approved Neighborhood Intelligence for listing on its stock market. The company said the stock will trade under the ticker symbol NXH.
The company further announced it appointed Jill Windrum as chief accounting officer and deputy CFO.
Neighborhood Intelligence reported its board of directors, in reviewing its tZERO, GrainChain and Medici Ventures blockchain operations, determined the three assets represented a significant but undervalued asset. In response, Neighborhood Intelligence said it is seeing interest from parties that recognize the value of the assets.
The board authorized an asset evaluation so Neighborhood Intelligence can pursue value-creation opportunities for its strategic investments focused on blockchain operations. The company is forming a special committee of independent directors and engaging an investment banking firm to help the board identify, evaluate and execute the best available alternatives.
Neighborhood Intelligence reported it has already engaged in discussions with interested parties about the blockchain operations, including opportunities to combine with existing capabilities or enhance Neighborhood Intelligence’s growth potential. The discussions are based on Neighborhood Intelligence’s belief that multiple credible paths are available, the company indicated. Alternatives may include strategic investments, partnerships or combinations, asset contributions, monetizations, public-market transactions, retained ownership through different structures, distributions to shareholders or other alternatives. Different assets might follow different paths, the company said.
Neighborhood Intelligence noted that, in the one case, it considers tZERO and other capabilities represented within the portfolio as positioned to play a role as real-world assets increasingly intersect with regulated digital markets. An updated ownership structure could provide greater visibility and a more appropriate market valuation while allowing Neighborhood Intelligence to maintain meaningful economic participation and give its shareholders access to enterprise value.
In a separate case, Neighborhood Intelligence indicated that Pelion Venture Partners manages Medici Ventures and retains contractual rights and economics. So, any alternative initiatives involving assets held through Medici will be evaluated and structured in light of that relationship.
According to Neighborhood Intelligence, the environment surrounding tokenization, digital ownership, real-world assets, and related infrastructure has evolved considerably, affecting blockchain operations.
“We believe these assets are severely underappreciated, and the time to act is now,” said Marcus Lemonis, Neighborhood Intelligence executive chairman and CEO. “Our strategy has not changed. What may change is the address of our ownership, not our belief in the opportunity. We believe a different structure may provide greater visibility, allow the market to more appropriately value these assets and, most importantly, provide our shareholders access to that value while preserving our ability to participate in their future.”
Meanwhile, regarding the company’s new chief accounting officer, Neighborhood Intelligence reported that Windrum has served in multiple CFO roles prior to joining its staff, including at Maxar Technologies’ $500 million U.S. Government business. Windrum leads Neighborhood Intelligence’s accounting and financial reporting organization while partnering across the enterprise on financial planning, controls, integration, process improvement and the continued development of a scalable finance organization, the company noted.
