FlexShopper Updates Status of Rights Offering
FlexShopper (Nasdaq: FPAY) provided an update on its rights offering, announcing the completion of its initial unit subscription that raised approximately $12 million, including $9.4 million in gross proceeds and $2.5 million from debt conversion with NRNS Capital Holdings. The proceeds were used to reduce borrowings under the company's credit agreement with Waterfall Asset Management.
The company estimates the initial unit subscription would have been approximately 15% accretive to pro-forma earnings per share for Q3 2024. Shareholders who participated in the unit subscription closing on January 10, 2025, can now participate in Series A, B, and C rights, with respective expiration dates of February 15, March 17, and April 16, 2025. Exercise prices start at $1.70 with varying VWAP calculations and maximum caps ranging from $2.55 to $4.25.
FlexShopper (Nasdaq: FPAY) ha fornito un aggiornamento sulla sua offerta di diritti, annunciando il completamento della sua iniziale sottoscrizione di unità che ha raccolto circa 12 milioni di dollari, inclusi 9,4 milioni di dollari in proventi lordi e 2,5 milioni di dollari derivanti dalla conversione del debito con NRNS Capital Holdings. I proventi sono stati utilizzati per ridurre i prestiti sotto l'accordo di credito dell'azienda con Waterfall Asset Management.
L'azienda stima che la sottoscrizione iniziale di unità avrebbe potuto essere approssimativamente 15% accrescitiva agli utili per azione pro forma per il terzo trimestre del 2024. Gli azionisti che hanno partecipato alla chiusura della sottoscrizione di unità il 10 gennaio 2025, possono ora partecipare ai diritti di Serie A, B e C, con rispettive date di scadenza del 15 febbraio, 17 marzo e 16 aprile 2025. I prezzi di esercizio partono da 1,70 dollari con varie calcolazioni VWAP e limiti massimi che vanno da 2,55 a 4,25 dollari.
FlexShopper (Nasdaq: FPAY) proporcionó una actualización sobre su oferta de derechos, anunciando la finalización de su suscripción inicial de unidades que recaudó aproximadamente 12 millones de dólares, incluyendo 9,4 millones de dólares en ingresos brutos y 2,5 millones de dólares de conversión de deuda con NRNS Capital Holdings. Los ingresos se utilizaron para reducir los préstamos bajo el acuerdo de crédito de la compañía con Waterfall Asset Management.
La compañía estima que la suscripción inicial de unidades habría sido aproximadamente 15% acrecentadora a las ganancias por acción pro forma para el tercer trimestre de 2024. Los accionistas que participaron en el cierre de la suscripción de unidades el 10 de enero de 2025, ahora pueden participar en los derechos de las Series A, B y C, con respectivas fechas de vencimiento del 15 de febrero, 17 de marzo y 16 de abril de 2025. Los precios de ejercicio comienzan en 1.70 dólares con diversos cálculos de VWAP y límites máximos que van de 2.55 a 4.25 dólares.
FlexShopper (Nasdaq: FPAY)는 권리 공모에 대한 업데이트를 제공하며, NRNS Capital Holdings와의 채무 전환으로부터 250만 달러를 포함하여 약 1200만 달러를 모금한 초기 단위 구독의 완료를 발표했습니다. 이 자금은 Waterfall Asset Management와의 신용 계약에 따라 회사의 차입금을 줄이는 데 사용되었습니다.
회사는 초기 단위 구독이 2024년 3분기 pro forma 주당 수익에 약 15%의 증가 효과를 미칠 것이라고 추정하고 있습니다. 2025년 1월 10일 단위 구독 마감에 참여한 주주들은 이제 2025년 2월 15일, 3월 17일, 4월 16일에 만기가 있는 A, B, C 시리즈 권리에 참여할 수 있습니다. 행사 가격은 1.70달러부터 시작하며 다양한 VWAP 계산과 최대 한도가 2.55달러에서 4.25달러까지 다양합니다.
FlexShopper (Nasdaq: FPAY) a fourni une mise à jour sur son offre de droits, annonçant l'achèvement de son abonnement initial d'unités qui a levé environ 12 millions de dollars, y compris 9,4 millions de dollars de produits bruts et 2,5 millions de dollars provenant de la conversion de dettes avec NRNS Capital Holdings. Les produits ont été utilisés pour réduire les emprunts au titre de l'accord de crédit de l'entreprise avec Waterfall Asset Management.
L'entreprise estime que l'abonnement initial d'unités aurait été d'environ 15 % accretif au bénéfice par action pro forma pour le troisième trimestre 2024. Les actionnaires ayant participé à la clôture de l'abonnement d'unités le 10 janvier 2025 peuvent maintenant participer aux droits de Série A, B et C, avec des dates d'expiration respectives le 15 février, le 17 mars et le 16 avril 2025. Les prix d'exercice débutent à 1,70 dollar avec divers calculs de VWAP et des plafonds maximums oscillant entre 2,55 et 4,25 dollars.
FlexShopper (Nasdaq: FPAY) gab ein Update zu seinem Bezugsangebot und kündigte den Abschluss seines anfänglichen Einheitensubskription an, das etwa 12 Millionen Dollar eingebracht hat, einschließlich 9,4 Millionen Dollar an Bruttoerlösen und 2,5 Millionen Dollar durch Schuldenumwandlung mit NRNS Capital Holdings. Die Erlöse wurden verwendet, um die Kredite unter dem Kreditvertrag des Unternehmens mit Waterfall Asset Management zu reduzieren.
Das Unternehmen schätzt, dass die anfängliche Einheitensubskription etwa 15% zulegend zu den pro forma Ergebnis je Aktie für das 3. Quartal 2024 gewesen wäre. Aktionäre, die an dem Abschluss der Einheitensubskription am 10. Januar 2025 teilgenommen haben, können nun an den Serien A, B und C-Rechten teilnehmen, die jeweils am 15. Februar, 17. März und 16. April 2025 ablaufen. Die Ausübungspreise beginnen bei 1,70 Dollar, mit unterschiedlichen VWAP-Berechnungen und maximalen Deckelungen zwischen 2,55 und 4,25 Dollar.
- Raised $12 million through rights offering and debt conversion
- 15% estimated accretion to Q3 2024 pro-forma EPS
- Successful debt reduction through credit agreement paydown
- Conversion of $2.5 million subordinated debt improving balance sheet structure
- Potential dilution from upcoming Series A, B, and C rights offerings
- Rights offering exercise prices set at discounts to VWAP
Insights
FlexShopper's strategic financial restructuring demonstrates a well-orchestrated approach to strengthening its balance sheet while providing existing shareholders opportunities for increased participation. The initial
The immediate application of proceeds to reduce borrowings under the Waterfall Asset Management credit facility showcases prudent debt management, potentially leading to reduced interest expenses and improved debt service coverage ratios. The projected
The subsequent three-tiered rights offering structure (Series A, B and C) reveals sophisticated financial engineering with several notable features:
- Graduated pricing mechanisms with increasing potential upside caps (
$2.55 ,$3.40 and$4.25 ) - Staggered expiration dates allowing for market price evolution
- Progressive discount rates (90%, 87.5% and 85% of VWAP) incentivizing earlier participation
This structure provides a balanced approach to capital raising while protecting against excessive dilution through price floors at
The conversion of subordinated debt with NRNS Capital Holdings represents a vote of confidence from a significant stakeholder, effectively reducing the company's debt burden while simplifying the capital structure. This transformation of debt to equity strengthens FlexShopper's balance sheet and potentially improves its ability to secure favorable financing terms in the future.
BOCA RATON, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions provider, today announced an update to its previously disclosed rights offering. FlexShopper shareholders who participated in the unit subscription that closed on January 10, 2025, are now eligible to participate in the Series A, B, and C rights. Details of which can be found in the body of this press release.
As a result of the initial unit subscription, FlexShopper raised approximately
“The outcome of the initial unit subscription demonstrates the accretive nature of our efforts to equitize our balance sheet,” said Russ Heiser, CEO of FlexShopper. “We are approaching the Series A, B, and C rights offerings from a position of strength and I am excited to provide investors with an update on our financial performance.”
Overview of Upcoming Rights
| Rights: | Expiration Dates: | Exercise Pricing of Rights: |
| Series A | February 15, 2025 | Exercise price equal to the higher of: 1) 2) |
| Series B | March 17, 2025 | Exercise price equal to the higher of: 1) 2) |
| Series C | April 16, 2025 | Exercise price equal to the higher of: 1) 2) |
It is important to note that many broker-dealers ask for rights subscription submissions prior to the expiration dates of the respective rights. As a result, FlexShopper encourages rightsholders to submit their submissions by February 13, 2025, March 14, 2025, and April 14, 2025.
FlexShopper encourages holders of the Series A, B, and C Rights to contact their broker or financial advisor’s Corporate Actions Department to participate in these subsequent rights. Rights offering information can be found at https://www.sec.gov and https://investors.flexshopper.com, or by calling the rights offer information agent, MacKenzie Partners at 800-322-2885.
Moody Capital Solutions, Inc. (Moody Capital) is acting as dealer-manager for the rights offering and can be contacted at info@moodycapital.com.
The offering was made pursuant to the Corporation’s registration statement on Form S-1 (File No. 333-282857), which 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, Inc.:
FlexShopper, Inc. (Nasdaq: FPAY) is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at flexshopper.com and in partnership with partner merchants both online as well as at brick and mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via 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. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: 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 the other risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Company Contact:
FlexShopper, Inc.
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
How much did FlexShopper (FPAY) raise in its initial unit subscription?
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