FlexShopper Announces First Come First Serve Extension of Rights Offering
FlexShopper (FPAY) has extended its rights offering expiration date to January 10, 2025, citing market disruption, budget deadlines, and Canadian postal strike delays. The offering allows stockholders of record as of December 2, 2024, to purchase up to 35 million units at $1.70 per unit. Each unit includes one common stock share plus Series A, B, and C rights for additional stock purchases at discounted market prices.
The offering provides two non-transferable subscription rights per share owned, with an over-subscription privilege for those who exercise all basic rights. Series A, B, and C rights expire 30, 60, and 90 days after the subscription offering closes. Moody Capital Solutions serves as dealer-manager, offering broker-dealers a $0.051 per unit fee and 3% on Series A, B, and C rights exercises.
FlexShopper (FPAY) ha esteso la data di scadenza dell'offerta di diritti al 10 gennaio 2025, citando disordini di mercato, scadenze di bilancio e ritardi causati dalla sciopero postale canadese. L'offerta consente agli azionisti registrati al 2 dicembre 2024 di acquistare fino a 35 milioni di unità a $1.70 per unità. Ogni unità include una azione ordinaria più i diritti di Serie A, B e C per acquisti di azioni aggiuntive a prezzi di mercato scontati.
L'offerta fornisce due diritti di sottoscrizione non trasferibili per ogni azione posseduta, con un privilegio di sovrascrizione per coloro che esercitano tutti i diritti di base. I diritti di Serie A, B e C scadono 30, 60 e 90 giorni dopo la chiusura dell'offerta di sottoscrizione. Moody Capital Solutions funge da manager-dealer, offrendo ai broker-dealer una commissione di $0.051 per unità e il 3% sugli esercizi dei diritti di Serie A, B e C.
FlexShopper (FPAY) ha extendido la fecha de vencimiento de su oferta de derechos al 10 de enero de 2025, citando interrupciones en el mercado, plazos presupuestarios y retrasos por la huelga postal canadiense. La oferta permite a los accionistas registrados hasta el 2 de diciembre de 2024 comprar hasta 35 millones de unidades a $1.70 por unidad. Cada unidad incluye una acción ordinaria más los derechos de las Series A, B y C para compras adicionales de acciones a precios de mercado con descuento.
La oferta proporciona dos derechos de suscripción no transferibles por cada acción poseída, con un privilegio de sobre suscripción para aquellos que ejercen todos los derechos básicos. Los derechos de las Series A, B y C vencen 30, 60 y 90 días después del cierre de la oferta de suscripción. Moody Capital Solutions actúa como gerente de ventas, ofreciendo a los corredores un honorario de $0.051 por unidad y el 3% en el ejercicio de los derechos de las Series A, B y C.
플렉스샵퍼 (FPAY)는 시장의 혼란, 예산 마감 및 캐나다 우편 파업으로 인한 지연을 언급하며 권리 제공의 만료 날짜를 2025년 1월 10일로 연장했습니다. 이 제공은 2024년 12월 2일 기준 주주들이 3500만 유닛을 유닛당 $1.70에 구매할 수 있도록 허용합니다. 각 유닛은 한 주식과 함께 추가 주식 구매를 위한 A, B, C 시리즈 권리가 포함되어 있으며, 할인된 시장 가격으로 제공됩니다.
이 제공은 소유한 주식당 비양도성 구독 권리 두 개를 제공하며, 모든 기본 권리를 행사하는 사람들을 위해 초과 구독 특권이 있습니다. A, B, C 시리즈 권리는 구독 제공이 종료된 후 30일, 60일, 90일 후에 만료됩니다. 무디 캐피탈 솔루션이 판매 관리자 역할을 하며, 브로커에게는 유닛당 $0.051의 수수료와 A, B, C 시리즈 권리 행사에 대해 3%의 수수료를 제공합니다.
FlexShopper (FPAY) a prolongé la date d'expiration de son offre de droits au 10 janvier 2025, citant des perturbations sur le marché, des délais budgétaires et des retards dus à la grève postale canadienne. L'offre permet aux actionnaires enregistrés au 2 décembre 2024 d'acheter jusqu'à 35 millions d'unités au prix de 1,70 $ par unité. Chaque unité comprend une action ordinaire ainsi que des droits de série A, B et C pour des achats d'actions supplémentaires à des prix de marché réduits.
L'offre fournit deux droits de souscription non transférables par action détenue, avec un privilège de sursouscription pour ceux qui exercent tous les droits de base. Les droits des séries A, B et C expirent 30, 60 et 90 jours après la clôture de l'offre de souscription. Moody Capital Solutions agit en tant que gestionnaire de courtage, offrant aux courtiers une commission de 0,051 $ par unité et 3 % sur l'exercice des droits des séries A, B et C.
FlexShopper (FPAY) hat das Ablaufdatum seines Angebots an Rechten auf den 10. Januar 2025 verlängert und verweist auf Marktstörungen, Budgetfristen und Verzögerungen durch den kanadischen Poststreik. Das Angebot ermöglicht es den am 2. Dezember 2024 registrierten Aktionären, bis zu 35 Millionen Einheiten zu einem Preis von 1,70 USD pro Einheit zu erwerben. Jede Einheit umfasst eine Stammaktie sowie Rechte der Serien A, B und C für den zusätzlichen Erwerb von Aktien zu vergünstigten Marktpreisen.
Das Angebot bietet zwei nicht übertragbare Bezugsrechte pro gehaltenem Anteil, mit einem Überzeichnungsprivileg für diejenigen, die alle Grundrechte ausüben. Die Rechte der Serien A, B und C verfallen 30, 60 und 90 Tage nach Schließung des Angebots. Moody Capital Solutions fungiert als Händler-Manager und bietet den Brokerhändlern eine Gebühr von 0,051 USD pro Einheit sowie 3 % auf die Ausübung der Rechte der Serien A, B und C.
- Over-subscription privilege allows additional unit purchases
- Flexible payment structure with Series A, B, C rights at discounted prices
- Professional dealer-manager engagement with broker incentives
- Potential dilution from 35 million new units offering
- Extension suggests possible weak initial subscription response
- Multiple market challenges affecting offering timing
Insights
This rights offering extension represents a significant capital raising initiative for FlexShopper, aiming to raise up to <money>$59.5 million</money> through the sale of 35 million units at <money>$1.70</money> per unit. The structure, including Series A, B and C rights for additional purchases, provides existing shareholders with substantial potential upside participation while protecting against dilution. The discounted unit price versus the current market price creates an immediate theoretical value for rights holders.
The extension to January 10, 2025, while potentially indicating slower-than-expected initial uptake, provides important additional time for shareholders to evaluate this complex offering structure. The inclusion of broker incentives (<percent>3%</percent> commission on subsequent rights exercises) suggests a coordinated effort to ensure successful completion. For a company with a <money>$36.5 million</money> market cap, this offering could fundamentally transform the capital structure and provide significant growth capital.
The timing of this extension aligns with broader market dynamics affecting small-cap fintech companies. The cited macroeconomic factors and budget deadlines have created challenging conditions for capital raising, particularly in the consumer finance sector. The offering's structure, with its multi-tiered rights approach, appears designed to capitalize on potential market recovery scenarios while providing existing shareholders preferential access to future upside.
The selected dealer fee of <money>$0.051</money> per unit and additional <percent>3%</percent> commission structure indicates a strategic focus on broad distribution and high participation rates. This approach could help ensure successful completion despite current market headwinds, though the extension suggests initial subscription levels may be below expectations.
All subscriptions will be honored from today going forward on a first come first serve basis
BOCA RATON, Fla., Dec. 23, 2024 (GLOBE NEWSWIRE) -- FlexShopper (Nasdaq: FPAY) (“FlexShopper” or the “Corporation”) announced today that it has extended the expiration date of its previously announced rights offering to ensure adequate time for holders of rights to make their first come first serve investment decision and for additional orders to be processed on a first come first serve basis. All other terms and conditions, including pricing, of the rights offering remain unchanged. A myriad of events, including the disruption in the equity markets resulting from macroeconomic factors, the overhang from the budget deadlines and delivery of documents to our Canadian shareholders as a result of the recently ended Canada postal strike, are contributing factors to the extension.
FlexShopper has extended the expiration of the rights offering to 5:00 pm ET on Friday, January 10, 2025 (the “Extended Expiration Time”). Only shareholders that exercise their initial units will receive Series A, B, and C rights to purchase FlexShopper’s common stock. The respective expiration dates will be extended accordingly for the Series A, B and C common stock purchase rights, which are 30, 60 and 90 days following the closing date of the subscription offering.
FlexShopper encourages its rights holders to contact their broker or financial advisor’s Corporate Actions Department immediately to participate in the rights offering. Rights offering information can be found at https://www.sec.gov and https://investors.flexshopper.com.
The rights offering allows FlexShopper’s stockholders of record as of December 2, 2024 to purchase up to 35,000,000 units. The rights offering was made through a dividend in the form of two non-transferable basic subscription rights for each share of common stock or common stock equivalent owned on the record date. Each right permits the holder to purchase one unit at a fixed subscription price of
The rights offering includes an over-subscription privilege, which entitles each rights holder that exercises all its basic subscription privileges in full the right to purchase additional units that remain unsubscribed at the Extended Expiration Time. The over-subscription privileges are subject to availability and a pro-rata allocation of shares among participants. All basic subscription rights and over-subscription privileges may be exercised during the subscription period through the Extended Expiration Time. If a rights holder does not exercise their subscription rights before the Extended Expiration Time, such rights will be deemed expired and void and will have no value.
If shares of common stock are held in the rights holder’s name, and subscription rights will not be exercised through a broker, dealer, custodian bank or other nominee (including any mobile investment platform), then the subscription certificate, all other required subscription documents and subscription payments should be sent by mail to Continental Stock Transfer, the Subscription Agent, at the address below, to be received before the Extended Expiration Time. Participants should refer to the instructions included with the subscription documents for complete information regarding completing and submitting the subscription documents.
By Hand or Overnight Courier or Regular Mail: | Continental Stock Transfer & Trust Company 1 State Street, 30th Floor New York, NY 10004 Attention: Corporate Actions – FlexShopper, Inc. |
A copy of the prospectus and related materials were sent to holders of record on December 3, 2024. Additionally, a copy of the prospectus may be requested from, and questions relating to the rights offering may be directed to, the information agent for the rights offering, as follows:
Rights Offering Information Agent
MacKenzie Partners, Inc.
7 Penn Plaza, Suite 503
New York, NY 10001
Telephone at (212) 929-5500 (bankers and brokers) or (800) 322-2885 (all others)
rightsoffer@mackenziepartners.com
FlexShopper has engaged Moody Capital Solutions, Inc. (“Moody Capital”) to act as dealer-manager for the rights offering. Moody Capital Solutions, Inc. invites any broker-dealers interested in participating in the rights offering to contact info@moodycapital.com. Moody Capital is offering a selected dealer fee of
The Corporation recommends that current shareholders consider notifying their broker or financial advisor about the rights offering to ensure their ability to participate in the rights offering.
The Company’s registration statement on Form S-1 was declared effective by the U.S. Securities and Exchange Commission on November 29, 2024. The prospectus relating to and describing the terms of the rights offering has been filed with the SEC on December 2, 2024, and is available on the SEC’s website at www.sec.gov. This announcement shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
About FlexShopper
FlexShopper, Inc. is a leading national financial technology company that offers innovative payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its direct-to-consumer online marketplace at Flexshopper.com and in partnership with merchants both online and at brick-and-mortar locations. FlexShopper’s solutions are crafted to meet the needs of a wide range of consumer segments through lease-to-own and lending products.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by or on behalf of the Corporation. The information contained in this press release may include, but are not limited to, statements about undertaking the rights offering, as well as, operating performance, trends, events that we expect or anticipate will occur in the future, statements about sales levels, restructuring, profitability and anticipated expenses and cash outflows. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Act and words such as “may,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “forecast” and other terms of similar meaning that indicate future events and trends are also generally intended to identify forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made, are not guarantees of future performance or expectations and involve risks and uncertainties. For the Corporation, these risks and uncertainties include, but are not limited to: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and those discussed more fully in documents filed with the SEC by the Corporation, particularly in Item 1A, Risk Factors, in Part I of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023, and Part II of the Corporation’s subsequently filed Quarterly Reports on Form 10-Q. The Corporation cannot guarantee any future results, levels of activity, performance or achievements. In addition, there may be events in the future that the Corporation may not be able to predict accurately or control which may cause actual results to differ materially from expectations expressed or implied by forward-looking statements. Except as required by U.S. federal securities law, we assume no obligation, and disclaim any obligation, to update forward-looking statements whether as a result of new information, events or otherwise.
Contacts
For FlexShopper:
Investor Relations
ir@flexshopper.com
Investor and Media Contact:
Andrew Berger, Managing Director
SM Berger & Company, Inc.
Tel: (216) 464-6400
andrew@smberger.com
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