FAVO Capital, Inc Closes $2 Million Bridge Raise Led by D. Boral Capital

Rhea-AI Summary

FAVO Capital (OTC PINK:FAVO) has secured a $2 million private placement through the sale of 8,000,000 shares of common stock and warrants at $0.25 per share. The deal, led by D. Boral Capital, includes warrants to purchase an additional 8,000,000 shares at $0.40 per share, exercisable for five years. The closing is expected on December 11, 2024.

The securities were offered under Section 4(a)(2) of the Securities Act and Regulation D, with FAVO agreeing to file registration statements for the resale of shares. The company plans to use this funding as a step toward its NASDAQ uplisting goal and growth in the Private Credit Sector.

Positive

• Secured $2 million in new funding through private placement
• Warrants could provide additional future funding at $0.40 per share
• Strategic partnership with established investment bank D. Boral Capital
• Progress towards NASDAQ uplisting goal

Negative

• Significant dilution with 8 million new shares being issued
• Additional potential dilution from 8 million warrants
• Shares priced at relatively low $0.25 per share

FORT LAUDERDALE, FL / ACCESSWIRE / December 12, 2024 / FAVO Capital, Inc. (OTC PINK:FAVO), a leading provider of alternative financing solutions in the Private Credit Sector, today announced that it has entered into securities purchase agreements with certain investors to purchase 8,000,000 shares of common stock and warrants to purchase up to 8,000,000 shares of common stock, at a purchase price of $0.25 per share and accompanying warrant. The gross proceeds to the Company from the private placement are expected to be approximately $2.0 million before deducting the placement agent's fees and other estimated offering expenses.

The warrants will be immediately exercisable from the date of issuance at an initial exercise price of $0.40 per share, subject to adjustments as set forth therein, and will expire five years from the date of issuance. The closing of the private placement is expected to occur on December 11, 2024, subject to the satisfaction of certain customary closing conditions set forth in the securities purchase agreement. D. Boral Capital is acting as the exclusive placement agent for the offering. The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the shares of common stock and the shares issuable upon exercise of the warrants.

Vincent Napolitano, FAVO Capital's CEO stated, "We are pleased with the initial response we have had from investors through D. Boral Capital, a trusted name in investment banking. Mr. Napolitano continued, "This is the first major step to achieving our long-term goals".

Shaun Quin, FAVO Capital President added, "We believe this significant milestone is testament to the efforts on the entire team. We are committed to our customers, investors and stakeholders and remain focused on growing FAVO as a dominant player within the Private Credit Sector and our focus on our NASDAQ uplisting goal."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

More About FAVO Capital, Inc.

FAVO Capital, Inc. (OTC PINK:FAVO) is a rapidly growing alternative finance company headquartered in Fort Lauderdale, FL. The Company offers personalized alternative finance solutions to emerging, small, and medium-sized businesses. "FAVO" is "Honeycomb" in Latin - The Honeycomb (Hexagon) is the most efficient shape in the universe. FAVO intends to be Efficient, Flexible & Durable.

For more information visit: www.favocapital.com

Contact:

Email: info@favocapital.com
Tel: 833.328.6477

More about D. Boral Capital

D. Boral Capital is an investment bank headquartered in New York, NY that provides strategic advisory and financing solutions to middle market and emerging growth companies. D. Boral Capital has a proven track record of providing exceptional strategic advisory to clients across the globe in any sector, with unique access to capital from the USA, Asia, Europe, UAE, and Latin America. D. Boral Capital continues to be a leader on Wall Street, having contributed to deal closings in an aggregate transaction value of over $18.0 billion across more than 270 transactions through a variety of product types.

For more information visit: www.dboralcapital.com

Safe Harbor/Forward-Looking Statements This press release contains certain forward-looking statements including, but not limited to, statements, estimates, and projections of future trends and of the anticipated future performance constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, including, without limitation, statements regarding the Series' expectations, beliefs, or future strategies that are signified by the words "expects," "anticipates," "intends," "believes," or similar language. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially from expected results. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of this press release FAVO Capital, Inc and its Management Team expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or regulation.

SOURCE: FAVO Capital, Inc.

View the original press release on accesswire.com

FAQ

What is the size and price of FAVO Capital's December 2024 private placement?

FAVO Capital raised $2 million through a private placement of 8,000,000 shares at $0.25 per share, including warrants to purchase an additional 8,000,000 shares at $0.40 per share.

When do FAVO Capital's new warrants expire?

The warrants issued in the December 2024 private placement will expire five years from the date of issuance.

What is FAVO Capital's plan for NASDAQ uplisting?

FAVO Capital has indicated that this $2 million private placement is a significant step toward their goal of uplisting to NASDAQ, though specific timeline details weren't provided.

How many additional shares could be issued through FAVO's warrant exercise?

The warrants allow for the purchase of up to 8,000,000 additional shares of FAVO common stock at an exercise price of $0.40 per share.