GreenBox POS Announces Closing of $100 Million Convertible Note Financing

Rhea-AI Summary

GreenBox POS (NASDAQ: GBOX) has closed a $100 million convertible note financing, receiving $84 million after deductions. The funds will be allocated for acquisitions, launching its Coyni stablecoin custodial revolver, and supporting growth plans. With this financing, GreenBox aims to transform payment solutions and enhance its financial infrastructure. The note matures in 24 months with an initial conversion price at over an 80% premium, setting the enterprise value upon conversion at over $700 million.

Positive

• Secured $84 million in financing to support growth initiatives.
• Funds will be used for acquisitions and launching the Coyni stablecoin.
• Sets enterprise value at over $700 million upon note conversion.

Negative

• None.

SAN DIEGO, CA, Nov. 09, 2021 (GLOBE NEWSWIRE) -- GreenBox POS (NASDAQ: GBOX) ("GreenBox" or the "Company"), an emerging fintech company that leverages proprietary blockchain security and token technology to create customized payment solutions, today announced the closing of its previously announced $100 million convertible note financing ($84 million following the deduction of an original issue discount).

The Company plans to use proceeds for acquisitions, to jumpstart the Coyni stablecoin custodial revolver and apply additional working capital toward the Company’s future growth, this is a significant milestone in executing the Company’s growth plans.

“This financing round not only fuels the next stage of progress for GreenBox and our planned stablecoin spin-off, Coyni, but also demonstrates our organization’s focus on executing against lofty goals,” said Ben Errez, GreenBox POS Chairman. The world of financial payments is ripe for disruption largely based on legacy architecture and painstaking processes for businesses to transact. Now with a fortified balance sheet, GreenBox is one crucial step closer to achieving our long-term vision of becoming the financial infrastructure for the new blockchain based future of banking and operating as a point-of-sale, PayFac, card issuance, and full banking platform around the world.”

The note will mature 24 months from the closing date. The initial conversion price equal to an over 80% premium to the market price of the Company’s common stock on October 29^th, 2021 sets enterprise value at over $700 million upon conversion.

EF Hutton, division of Benchmark Investments, LLC, acted as the exclusive placement agent for the offering.

The securities were offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-257798) that GreenBox previously filed with the U.S. Securities and Exchange Commission (“SEC”). The offering will be made only by means of a written prospectus supplement and the accompanying prospectus that form a part of the registration statement. An electronic prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying base prospectus relating to these securities will be available on the SEC’s website at www.sec.gov and may also be obtained, when available, by contacting EF Hutton, division of Benchmark Investments, LLC, 590 Madison Avenue, 39th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@efhuttongroup.com or telephone at (212) 404-7002.

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.

About GreenBox POS

GreenBox POS (NASDAQ: GBOX) is an emerging financial technology company leveraging proprietary blockchain security and token technology to build customized payment solutions. The Company's applications enable an end-to-end suite of turnkey financial products, fraud detection and improving the efficiency of handling large-scale commercial processing volumes for its merchant clients. For more information, we invite you to visit the Company's website at www.greenboxpos.com.

Forward-Looking Statements Disclaimer

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set out in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Investor Relations Contact
Mark Schwalenberg
MZ Group - MZ North America
312-261-6430
GBOX@mzgroup.us
www.mzgroup.us

FAQ

What is the recent financing raised by GreenBox POS (GBOX)?

GreenBox POS raised $100 million in convertible note financing, netting $84 million.

What will GreenBox POS (GBOX) use the financing for?

The financing will be used for acquisitions, launching the Coyni stablecoin, and future growth.

What is the maturity period of the convertible note for GreenBox POS (GBOX)?

The convertible note matures in 24 months from the closing date.

What is the enterprise value of GreenBox POS (GBOX) upon conversion of the notes?

The enterprise value is set at over $700 million upon conversion.