BOCA RATON, Fla., Jan. 13, 2025 (Globe Newswire) — FlexShopper, Inc. (NASDAQ:)a prominent national online lease-to-own retailer and payment solutions provider, today announced the preliminary results of its previously disclosed unit rights offering (Rights Offering). This Unit Rights Offering expires at 5:00 PM ET on January 10, 2025 (Expiration Date). The Company also announced that holders of the Company’s subordinated notes have elected to convert 25%, or $2.5 million, of the outstanding outstanding amount of their warrants. The units sold for $1.70 were a 15% discount from the three-day volume-weighted average price and included one share and three additional rights to purchase shares at a discount from the trading price.
Preliminary earnings
According to Continental Stock Transfer & Trust Company (underwriting agent), as of the expiration date, approximately 5,547,993 stock acquisition rights (“Warrants”) have been exercised, representing approximately 21% of the Company’s common stock. has been. Through the first part of the subscription rights offering, FlexShopper raised $9.4 million in total revenue. You are entitled to an additional 21 million shares, exercisable at 30-day intervals over the next 90 days.
“We would like to thank all of our stockholders who have subscribed to our stock options for their continued support, trust and, most importantly, their faith in FlexShopper,” said Russ Heiser, CEO of FlexShopper. Ta. Rights issues are an efficient, shareholder-friendly, and incremental way to raise capital. At the end of the third quarter of 2024, the Company’s stock price closed at $1.03 per share, representing a market capitalization of $22.1 million. In comparison, FlexShopper’s closing stock price as of January 10, 2025 was $1.90 per share, giving it a market capitalization of over $54 million. We believe this rating reflects the strength of our financial and operating results as well as the increased use of proceeds from our rights offerings.
Mr. Heiser continued: “Shareholders who participated in the subscription rights will now have access to additional opportunities to increase their investment in FlexShopper through future Series A, B, and C rights that expire in 30, 60, and 90 days, respectively. ” The Company estimates that equal participation in Series A, B, and C rights would raise a total of approximately $48 million and save approximately $8.5 million in annual dividend and interest expense. I am.
The Company intends to use the proceeds from the initial public offering to repurchase more than 90% of its Series 2 convertible preferred stock and to repay a portion of its credit facility and other outstanding debt facilities. Remaining proceeds will be used for general corporate purposes, including potential acquisitions of other companies. The shares subscribed for under the subscription rights are expected to be issued to participating shareholders on or about January 15, 2025.
Conversion of subordinated debt
NRNS Capital Holdings LLC (NRNS), whose manager serves as Chairman of the Board of Directors of FlexShopper, will convert $2.5 million of its $10.75 million principal balance of debt as of September 30, 2024 in a tender offer. I chose to. As of September 30, 2024, the outstanding amounts under the NRNS Notes bear interest at the rate of 19.21%. The partial conversion of the NRNS subordinated notes results in an estimated outstanding balance of $8.25 million. FlexShopper estimates that it will save approximately $500,000 in annual interest expenses as a result of this conversion.
Mr. Heiser concluded that he is excited about the direction FlexShopper is headed as it expands market share and executes a growth-oriented strategic plan. Equitization of our balance sheet represents a strong opportunity to increase returns for our shareholders. We look forward to providing further updates on our successes in the coming months.
FlexShopper encourages holders of Series A, B, and C rights to participate in these subsequent rights by contacting their broker or financial advisor’s corporate actions department. Information regarding the rights offer is available at https://www.sec.gov and https://investors.flexshopper.com.
The offering was made pursuant to the Company’s registration statement on Form S-1 (File No. 333-282857), which was declared effective by the Securities and Exchange Commission on November 29, 2024. The rights offering was filed with the SEC on December 2, 2024 and is available on the SEC’s website at www.sec.gov. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall this announcement constitute an offer to sell, or the solicitation of an offer to buy, any securities in any state or state in which such offer, solicitation, or sale would be unlawful prior to registration or registration. There shall be no sale of these securities. Eligibility under applicable state securities laws.
About Flex Shopper Co., Ltd.:
FlexShopper, Inc. (Nasdaq: FPAY) is one of the nation’s leading financial technology companies providing payment options to consumers. FlexShopper offers a variety of flexible financing options to underserved consumers through its online direct-to-consumer marketplace at flexshopper.com and in partnership with merchant partners both online and in-store. We provide. FlexShopper’s solutions are designed to meet the needs of a broad range of consumer segments through lease-to-own and lending products.
Forward-looking statements
All statements in this release that are not based on historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Assuming and describing our future plans, strategies, and expectations generally includes the following: Estimated, Anticipated, or Other Equivalent Terms. Examples of forward-looking statements include, among other things, our statements regarding our expectations for lease origination and the expansion of our lease-to-own program. expectations regarding partnerships with retail partners; our investments in and success in our underwriting technology and risk analytics platform; our ability to collect payments due from our customers; Expectations for future performance forecasts and business strategies, etc. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements as a result of a variety of factors, including, among other things: our ability to obtain adequate financing to finance our operations in the future; our inability to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreements; dependence on the success of, and continued relationships with, our third party retail partners; compliance with various federal, state and local laws and regulations, including those relating to consumer protection; failure to protect the integrity and security of customer and employee information; Other risks and uncertainties are discussed in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. It is listed in. The forward-looking statements contained in this release speak only as of the date of this release and, unless otherwise required by law, FlexShopper does not intend to reflect actual results or changes in expectations. We undertake no obligation to update any such forward-looking statements.
Company contact:
Flex Shopper Co., Ltd.
Investor information
ir@flexshopper.com
Investor and Media Contacts
andrew berger
President
SM Berger & Company, Inc.
Phone (216) 464-6400
andrew@smberger.com
Source: FlexShopper, Inc.
