SRx Health Solutions entered into a definitive merger agreement with EMJ Crypto Technologies, a digital‑asset treasury operating platform, marking a strategic pivot into the digital‑asset space. The deal will combine SRx’s existing $18 million Bitcoin and Ethereum holdings with EMJ’s platform to create a multi‑asset digital treasury management capability.
As part of the transaction, SRx announced it will hedge its cryptocurrency and emerging‑market investment portfolio to protect against volatility. The hedge is intended to safeguard the $18 million in digital assets that the company has held since January 2026, as well as any future gains or losses that could affect shareholder value during the integration period.
The merger follows a period of financial restructuring. In Q1 2026, SRx reported net sales of $2.8 million and a net loss of $8.6 million, while its cash and cash equivalents rose to $13.1 million from $1.3 million at the end of the prior quarter. The company also completed a Series B convertible preferred stock private placement on March 16, 2026, raising $4.53 million in cash with the potential to reach $8 million, providing liquidity to support the merger and ongoing operations.
CEO Kent Cunningham said, "Q1 FY26 marked a pivotal reset for the Company... With additional capital raised subsequent to quarter-end and deployed strategically to support operational priorities and our digital treasury strategy, we are restoring momentum and positioning the business for a stronger and more profitable 2026."
The announcement also signals a shift away from SRx’s former Canadian healthcare operations, consolidating the company into a single consumer‑products segment focused on premium pet food and wellness under the Halo® brand. The merger and hedging strategy are expected to provide a more diversified revenue base and reduce exposure to the volatility of the crypto market while maintaining the company’s ability to capture upside in digital assets.
Director Michael Young added, "We look forward to updating the market and our shareholders in the near term on the proposed timeline to close on the EMJX transaction."
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