FlexShopper Announces Record Date for Proposed Rights Offering
FlexShopper (FPAY) has announced details for its proposed rights offering, setting December 2, 2024, as the record date. The offering will distribute two non-transferable subscription rights per common share, allowing holders to purchase units at $1.70 each. Each unit includes one common share and Series A, B, and C rights for additional share purchases. The offering aims to raise capital to repurchase over 90% of Series 2 Convertible Preferred Stock, repay credit facilities, and fund potential acquisitions. NRNS Capital Holdings may purchase up to $10.6 million in units, while officers and directors have indicated intentions to purchase at least $5.0 million worth.
FlexShopper (FPAY) ha annunciato i dettagli della sua proposta di offerta di diritti, fissando il 2 dicembre 2024 come data di registrazione. L'offerta distribuirà due diritti di sottoscrizione non trasferibili per ogni azione ordinaria, permettendo ai possessori di acquistare unità a $1,70 ciascuna. Ogni unità comprende un'azione comune e i diritti di Serie A, B e C per ulteriori acquisti di azioni. L'offerta mira a raccogliere capitali per riacquistare oltre il 90% delle Azioni Preferenziali Convertibili di Serie 2, rimborsare le linee di credito e finanziare potenziali acquisizioni. NRNS Capital Holdings potrebbe acquistare fino a $10,6 milioni in unità, mentre funzionari e membri del consiglio hanno indicato l'intenzione di acquistare almeno $5,0 milioni in valore.
FlexShopper (FPAY) ha anunciado los detalles de su propuesta de oferta de derechos, estableciendo el 2 de diciembre de 2024 como la fecha de registro. La oferta distribuirá dos derechos de suscripción no transferibles por cada acción ordinaria, permitiendo a los titulares comprar unidades a $1.70 cada una. Cada unidad incluye una acción común y derechos de las Series A, B y C para compras adicionales de acciones. La oferta tiene como objetivo recaudar capital para recomprar más del 90% de las Acciones Preferentes Convertibles de la Serie 2, pagar las líneas de crédito y financiar posibles adquisiciones. NRNS Capital Holdings podría adquirir hasta $10.6 millones en unidades, mientras que funcionarios y directores han manifestado su intención de comprar al menos $5.0 millones en valor.
FlexShopper (FPAY)는 제안된 권리 공모의 세부 사항을 발표하며 2024년 12월 2일을 기록 날짜로 설정했습니다. 이 공모는 보통주 1주당 두 개의 양도 불가능한 구독 권리를 배포하여 보유자가 각각 $1.70에 유닛을 구매할 수 있게 합니다. 각 유닛은 하나의 보통주와 추가 주식 구매를 위한 A, B, C 시리즈 권리를 포함합니다. 이 공모는 시리즈 2 전환 우선주 90% 이상을 재매입하고, 신용 시설을 상환하며, 잠재적인 인수를 위한 자금을 조달하기 위해 자본을 모집하는 것을 목표로 합니다. NRNS Capital Holdings는 최대 $10.6 백만의 유닛을 구매할 수 있으며, 임원 및 이사진은 최소 $5.0 백만 가치를 구매할 계획을 나타냈습니다.
FlexShopper (FPAY) a annoncé les détails de son offre de droits proposée, fixant le 2 décembre 2024 comme date d'enregistrement. L'offre distribue deux droits de souscription non transférables par action ordinaire, permettant aux détenteurs d'acheter des unités à 1,70 $ chacune. Chaque unité comprend une action ordinaire et des droits des séries A, B et C pour des achats d'actions supplémentaires. L'objectif de l'offre est de lever des fonds pour racheter plus de 90 % des actions privilégiées convertibles de série 2, rembourser des lignes de crédit et financer d'éventuelles acquisitions. NRNS Capital Holdings pourrait acheter jusqu'à 10,6 millions de dollars en unités, tandis que les dirigeants et administrateurs ont indiqué leur intention d'acheter au moins 5,0 millions de dollars de valeur.
FlexShopper (FPAY) hat die Einzelheiten zu seinem vorgeschlagenen Bezugsrechtangebot bekannt gegeben und den 2. Dezember 2024 als Stichtag festgelegt. Bei dem Angebot werden zwei nicht übertragbare Bezugsrechte pro Stammaktie verteilt, die es den Inhabern ermöglichen, Einheiten zu einem Preis von 1,70 $ pro Einheit zu erwerben. Jede Einheit umfasst eine Stammaktie sowie Rechte der Serien A, B und C für zusätzliche Aktienkäufe. Das Angebot zielt darauf ab, Kapital zu beschaffen, um über 90 % der Wandelschuldverschreibungen der Serie 2 zurückzukaufen, Kreditfazilitäten zurückzuzahlen und potenzielle Akquisitionen zu finanzieren. NRNS Capital Holdings könnte bis zu 10,6 Millionen Dollar in Einheiten kaufen, während Beamte und Direktoren beabsichtigt haben, mindestens 5,0 Millionen Dollar zu kaufen.
- Potential to significantly reduce debt through repurchase of preferred stock
- Management commitment demonstrated by $5.0 million purchase intention
- Additional funding opportunity through NRNS Capital Holdings for $10.6 million
- Potential dilution for existing shareholders who don't participate in the rights offering
- Complex multi-phase rights structure may deter some investors
Insights
This rights offering represents a significant financial restructuring for FlexShopper, with several key implications. The company is offering two subscription rights per share at
The structure is complex, featuring Series A, B and C rights that could lead to significant share multiplication - shareholders exercising all rights could increase their position by 9x. This indicates a substantial recapitalization effort aimed at debt reduction and balance sheet improvement. The planned use of proceeds to repurchase over
BOCA RATON, Fla., Nov. 27, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) (the “Corporation”) announced today the tentative calendar for its previously proposed rights offering (“Rights Offering”). The Corporation is planning to commence the Rights Offering to raise capital to equitize its balance sheet through funding the repurchase of over
The Rights Offering will be 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 dividend of the subscription rights must be settled within one business day of the transaction date. To be considered a shareholder of record you must own the stock in your brokerage account as of 4:00 p.m., Eastern Time, on Friday, November 29, 2024, which is one trading day before the record date of Monday, December 2, 2024.
The proposed Rights Offering also includes an over-subscription privilege, which will entitle each rights holder that exercises all its basic subscription privileges in full, the right to purchase additional units that remain unsubscribed at the expiration of the rights offering. Both the basic and over-subscription privileges are subject to the availability and pro-rata allocation of shares among participants. All basic subscription rights and over-subscription privileges may be exercised during the subscription period of Tuesday, December 3, 2024, through 5:00 p.m., Eastern Time, Friday, December 20, 2024, on a pro-rata basis.
A shareholder that exercises their two non-transferable basic subscription rights at the
If and to the extent there are unsubscribed units upon the expiration of the offering of the subscription rights, NRNS Capital Holdings LLC (“NRNS”) has indicated that it may purchase up to
Officers and directors of the Corporation have given indications they intend to purchase at least
The Corporation recommends that current shareholders consider notifying their broker or financial advisor about the upcoming rights offering to ensure their ability to participate in the rights offering.
The expected calendar for the rights offering is as follows:
| Dates* | ||
| Record date | December 2, 2024 | |
| Commencement date | December 3, 2024 | |
| SUBSCRIPTION RIGHTS | ||
| Deadline for delivery of subscription certificates and payment of unit subscription price | December 20, 2024 | |
| Expiration date for Subscription Rights | December 20, 2024 | |
| Extension period (if any) | January 21, 2025 | |
| SERIES A RIGHTS | ||
| Deadline for delivery of subscription certificates and payment of exercise price | January 21, 2025 | |
| Expiration date for Series A Rights | January 21, 2025 | |
| SERIES B RIGHTS | ||
| Deadline for delivery of subscription certificates and payment of exercise price | February 18, 2025 | |
| Expiration date for Series B Rights | February 18, 2025 | |
| SERIES C RIGHTS | ||
| Deadline for delivery of subscription certificates and payment of exercise price | March 20, 2025 | |
| Expiration date for Series C Rights | March 20, 2025 |
* This time schedule assumes that the subscription offering will be completed by its original expiration date. To the extent the subscription offering is extended, all following dates will be adjusted accordingly.
The Corporation previously filed a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”) relating to the rights offering. The registration statement has not yet become effective. The distribution of rights and the commencement of the rights offering will occur promptly following the effectiveness of the registration statement. The Corporation reserves the right to terminate the proposed rights offering at any time prior to the expiration date for any reason.
The Corporation has engaged Moody Capital Solutions, Inc. to act as dealer-manager for the rights offering.
Questions about the rights offering may be directed to and, when available, copies of the prospectus may be obtained from 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
Moody Capital Solutions, Inc. invites any broker-dealers interested in participating in the rights offering to contact info@moodycapital.com.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. The securities may not be sold nor offers to buy be accepted prior to the time the registration statement becomes effective. 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. The rights offering, which is expected to be launched immediately following the effectiveness of the registration statement, will be made only by means of a prospectus.
About FlexShopper, Inc.
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
FAQ
What is the subscription price per unit in FlexShopper's (FPAY) rights offering?
When is the record date for FlexShopper's (FPAY) rights offering?
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How many subscription rights will FPAY shareholders receive per common share?
