FOXO Technologies Inc. ( FOXO ) stock originally traded higher on Monday but reversed after the company announced a non-binding acquisition agreement for two assisted-living facilities in Florida.

What To Know: The company agreed to acquire the facilities for a total of $60 million, or $30 million each, with part of the payment tied to milestones. FOXO ( FOXO ) is considering funding options, including a new series of preferred stock, to complete the acquisitions.

The companies aim to finalize a definitive agreement within 60 days and close the deal 60 to 120 days afterward, subject to satisfactory due diligence and financing.

“We like the recurring revenue and cash flow model in this sector and are confident that diversifying our current service offerings in health care will create significant value and opportunity for our shareholders,” said Seamus Lagan, CEO of FOXO ( FOXO ).

Notably, the two facilities contain roughly the same amount of units. The first facility has 129 units and the second facility has 137 units.

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FOXO Price Action: FOXO ( FOXO ) shares were 3.41% lower at 20 cents at market close Monday, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.