(June 27, 2023) -- Today, Boxabl, an innovative housing construction company, announced it has successfully acquired 500 Group Inc. and Build IP LLC, along with their substantial portfolio of building construction patents and intellectual property. The acquisition, valued at $30 million, was financed entirely through a stock only deal.
Boxabl's founders, Paolo and Galiano Tiramani, have committed to using all proceeds from the acquisition for philanthropic purposes. They plan to establish the 'Boxabl Charitable Foundation,' envisioning a robust program for charitable giving which will enable impactful social work in the future.
Boxabl's philanthropic aspirations align with its mission of addressing the global housing crisis. "We hope this can be the beginning of a larger program of charitable giving," said Paolo Tiramani. "This deal is aligned with our goal to help those in need, and it feels great."
Strategically, the acquisition will also improve Boxabl's financial positioning, as Galiano Tiramani explained: "This deal eliminates the 1% royalty fee on each unit previously owed by Boxabl on a going-forward basis, which we decided was no longer in the best interest of the company."
Build IP LLC is a company wholly owned by the Boxabl co-founders which exclusively granted the licenses to their extensive patent portfolio to Boxabl. In return, Boxabl paid a 1% royalty fee to Build IP LLC. The licenses were a point of substantial contention for investors and Boxabl skeptics alike. Many skeptics noted it was misleading or concerning that Boxabl did not own the patents, just the exclusive license to those patents. Further, the 1% fee was criticized as unnecessary and poor optics, among other criticisms.
Boxabl is no stranger to the crowd or controversy, however. The company has raised over $100 million from retail investors skyrocketing the company to a unicorn valuation. Following feedback from their extensive investor network, it seems Boxabl will not only eliminate the 1% fee, but allot $30 million in stock to charity. This will likely aid fundraising efforts as the company gears up for another round of fundraising.
Despite the considerable achievement, the Boxabl founders maintain that they are just getting started in the sector of intellectual property. They believe the building construction industry is ripe for revolutionary innovation, seeing abundant opportunities to reduce costs, speed up production, increase quality, and foster environmentally friendly practices.
"I'll look forward to leading our Boxabl teams in those endeavors and further fortifying Boxabl's patent portfolio to an extreme degree," Paolo Tiramani said, outlining his intent to continue driving Boxabl's mission.
Boxabl continues to be at the forefront of the housing construction industry, revolutionizing the standard of affordability and quality of homes through its advanced manufacturing technology and now, its strengthened intellectual property portfolio.