Myseum, Inc. (MYSE) completed the sale of its approximately 34% ownership interest in RPM Interactive, Inc. for a cash‑equivalent consideration of $6.5 million, a portion of the $19.5 million total transaction value. The deal was executed through a 100% acquisition of RPM by Avalon GloboCare Corp., which issued 19,500 shares of Series E Non‑Voting Convertible Preferred Stock to RPM shareholders. Each preferred share carries a stated value of $1,000 and a conversion price of $1.50, meaning Myseum’s stake was valued at roughly $6.5 million based on the preferred‑stock terms rather than the aggregate purchase price.
The divestiture removes Myseum’s exposure to RPM’s AI‑generated publishing business, allowing the company to reallocate capital and management bandwidth toward its core privacy‑first social platform, Picture Party, and its messaging product, DatChat Messenger. Myseum’s Q3 2025 financials showed a net loss of $1.23 million, underscoring the need for balance‑sheet strengthening. The proceeds from the sale will be deployed to accelerate product development, expand marketing, and shore up liquidity.
Avalon GloboCare’s acquisition of RPM is a strategic move to address its Nasdaq stock‑holders’ equity deficiency. By adding RPM’s AI video‑generation capabilities, Avalon aims to enhance marketing for its consumer health brands, notably KetoAir, and to meet the minimum equity threshold required for continued Nasdaq listing. However, the Series E preferred shares carry conversion restrictions until May 12 2026 and require shareholder approval, raising potential dilution concerns for existing shareholders.
Management commentary highlights the strategic rationale: CEO Darin Myman said the sale “enables us to focus our resources on expanding our core Picture Party business” and emphasized the value of the newly granted patent protecting the platform’s privacy‑first architecture. Interim CEO Meng Li of Avalon noted that integrating RPM’s AI studio “will broaden our digital reach and support our long‑term value creation strategy.”
Market reaction to the announcement reflected investor sentiment on both sides. Myseum’s stock experienced a modest uptick, driven by the perception that divesting a non‑core asset will improve focus and balance‑sheet health. Conversely, Avalon’s shares fell sharply, as investors weighed the company’s Nasdaq compliance uncertainty and the potential dilution from the preferred‑stock issuance. The negative reaction underscores the market’s sensitivity to regulatory compliance and capital structure risks.
Overall, the transaction represents a significant shift for both companies: Myseum is sharpening its product portfolio around privacy‑centric social media, while Avalon is leveraging RPM’s AI technology to bolster its marketing capabilities and satisfy listing requirements. The sale’s proceeds and strategic realignment are likely to influence future growth trajectories and investor expectations for both firms.
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