FDCTech Strengthens Balance Sheet as Noteholder Converts Debt Into Restricted Affiliate Equity

Rhea-AI Summary

FDCTech, Inc. announced on February 25, 2021, that FRH Group converted $1,256,908 of affiliate convertible notes into 12,569,080 common shares. This conversion reduces total liabilities by 72.35%, improving the company's net asset position for a potential uplisting. The CEO expressed gratitude towards FRH Group for their support and indicated that eliminating secured debt is a crucial step towards growth and completing the acquisition of Genesis Financial, Inc. The company aims to strengthen its financials for future expansion.

Positive

• Liabilities decreased from $1,737,254 to $480,346, a reduction of 72.35%.
• Conversion of debt into equity improves financial flexibility.
• Successful acquisition of Genesis Financial anticipated to enhance growth.

Negative

• None.

Irvine, CA, Feb. 25, 2021 (GLOBE NEWSWIRE) -- FDCTech, Inc. ("FDC" or the "Company," OTCQB: FDCT), a fintech company with a full suite of FX technology and business solutions, today announced that effective February 22, 2021, FRH Group, holder of the affiliate convertible notes, with the face value in the principal $1,000,000 issued between Date February 22, 2016, and April 24, 2017, totaling $1,256,908 at a coupon of 6% had converted their debt into 12,569,080 common shares of the Company under the terms of the convertible notes. FRH Group provided the seed capital to the Company beginning February 2016.

With the conversion, the Company removed unnecessary limitations to secure the growth funding at an optimum cost of capital. Further, the Company reduced its total liabilities from $1,737,254 to $480,346, a decrease of 72.35% as of the beginning of fiscal 2021. The Company needed to improve its net asset position to prepare for a potential uplist and timely close and integrate the acquisition of Genesis Financial, Inc. ("Genesis").

"We are extremely thankful to FRH Group for being a long-term supporter and trusted partner of the Company," said FDC Founder and CEO Mitchell M. Eaglstein. He added: "Although there are still several barriers to our goal to up-list to a larger exchange; by eliminating secured debt, we have arguably taken the first concrete step in this process. Coupled with the anticipated completion of Genesis acquisition and continuation of positive market conditions, we believe the combined Company financials will be strong for a future uplist and growth."

FDCTech, Inc.

FDCTech, Inc. ("FDC"), formerly known as Forex Development Corporation, is a US-based, fully integrated financial technology company. FDC delivers trading technology solutions to forex market participants looking to access the retail and institutional spot forex markets.

Press Release Disclaimer

Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets, and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. The Company does not make any representation or warranty, express or implied, regarding the accuracy, completeness, or updated status of such forward-looking statements or information provided by the third-party. Therefore, in no case whatsoever will Company and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or any related damages.

Contact Media Relations
FDCTech, Inc.
info@fdctech.com
www.fdctech.com
+1 877-445-6047
200 Spectrum Drive, Suite 300,
Irvine, CA, 92618

 

FAQ

What is the impact of FRH Group converting debt into FDCT shares?

The conversion reduced FDCT's liabilities significantly, aiding in financial stability for growth.

How much debt did FDCT eliminate with the recent conversion?

FDCT eliminated $1,256,908 in convertible notes, decreasing total liabilities by 72.35%.

What does FDCT aim to achieve after reducing its liabilities?

FDCT intends to uplist to a larger exchange and complete the acquisition of Genesis Financial.

When was the debt conversion by FRH Group effective?

The debt conversion was effective on February 22, 2021.