Arax Holdings Corp (ticker: ARAT) is making strategic moves in the technology and financial sector with recent acquisitions of financial licenses in Switzerland and a focus on Core Blockchain. This article delves into the company’s current financials, plans for expansion, and the potential opportunities that lie ahead for Arax Holdings Corp in the rapidly advancing world of technology and digital currencies.
Arax Holdings Corp is a Nevada-based company, incorporated in February 2012, with minimal operating history and minimal revenues or earnings from operations. Its financial statements, as of April 30, 2023, indicate that the company is operating with limited capital resources, which has raised substantial doubts about its ability to continue as a going concern. However, recent developments and strategic moves suggest the company is poised for potential growth in the coming years.
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Expanding Operations
Arax Holdings Corp has begun diversifying its operations by providing software and logistics services to a South African company. The company is working on strengthening this relationship while expanding its presence in other regions. In addition, Arax has acquired financial licenses in Switzerland under the entity Cilandro and is currently working to provide Central Business Digital Currencies for various entities worldwide.
Furthermore, the company is focusing on developing software solutions that work exclusively on the Core Blockchain, a new technology released in May 2022. By working on exclusive blockchain-based solutions, Arax aims to maximize its potential for revenue generation in this advancing sector.
Acquisitions and Partnerships
Arax Holdings Corp has entered into consulting and design agreements and is in the process of evaluating additional acquisitions of software technologies. This move to grow its portfolio and partnerships is essential for the company to expand its reach and tap into new markets.
Management’s Strategy
The company’s management seeks to explore and identify business opportunities within the US, including potential acquisitions of operating entities through reverse mergers, asset purchases, or similar transactions. While the management has experience in business consulting, there are no assurances that they can successfully identify and implement a viable business strategy that results in profits.
Financial Performance and Liquidity
As of April 30, 2023, Arax Holdings Corp had generated revenue in the six months prior, whereas no revenue was generated in the same period of 2022. The net losses for the six-month periods ending April 30, 2023, and 2022 were $1,302,385 and $36,663, respectively.
Arax Holdings Corp had limited working capital during the period, which raises concerns about its ability to fund operations over the next year. However, the company currently relies on an entity controlled by the Company’s Chairman for funds used to pay corporate expenses. This reliance may need to shift as the company grows and requires additional capital for expansion and new ventures.
Conclusion
Arax Holdings Corp is making headway in the technology and financial sector with promising plans for expansion, acquisitions, and a focus on blockchain technology. While the company faces uncertainties and potential risks, strategic planning and resourceful management could pave the way for a successful and profitable future for Arax Holdings Corp.
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