GreenBox POS Announces Restructuring of Convertible Note Terms

Rhea-AI Summary

GreenBox POS (NASDAQ: GBOX) announced a significant restructured agreement regarding its $100 million convertible note financing. The maturity date has been extended by one year to November 5, 2024. Starting October 3, 2022, interest payments may be paid in shares of common stock unless otherwise specified. This restructuring is aimed at mitigating risks and enhancing cash flow, allowing GreenBox to concentrate on long-term growth and potential merger and acquisition opportunities. Further details are available in the filed Form 8-K.

Positive

• Note maturity extended to November 5, 2024, improving cash flow.
• Option to reduce cash interest expense by issuing shares instead.

Negative

• None.

New Agreement Extends Note Maturity by 1 Year; Adds Option to Reduce Cash Interest Expense

SAN DIEGO, CA, Aug. 17, 2022 (GLOBE NEWSWIRE) -- GreenBox POS (NASDAQ: GBOX) (“GreenBox” or “the Company”), an emerging and rapidly growing FinTech company today announced that it has entered into an agreement to restructure the terms of the $100 million convertible note financing, originally entered into on November 2, 2021.

Under the amended agreement, and as detailed on the Company’s filed Form 8-K, the note maturity will be extended by one year from November 5, 2023 to November 5, 2024. Additionally, for interest payments due on and after October 3, 2022 unless the Company specifies with written notice that interest will be paid in cash, GreenBox will issue shares of its common stock instead. Further details regarding the terms are available in the Company’s filed Form 8-K now available on the GreenBox Investors website at https://investors.greenboxpos.com/financials/sec-filings/

“In the spirit of cooperation with our note holder, we were once again able to come to mutually agreed upon terms, to mitigate risk, while significantly improving our cash flows,” said Ben Errez, Chairman of GreenBox POS. “This allows us to focus on our long-term growth initiatives, adding the potential for material M&A opportunities while continuing to accelerate processing volume growth.”

About GreenBox POS

GreenBox POS (NASDAQ: GBOX) is an emerging financial technology company leveraging proprietary blockchain security 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 globally. For more information, we invite you to visit the Company's website at www.greenboxpos.com.

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

FAQ

What is the new maturity date for GreenBox POS's convertible note?

The new maturity date for GreenBox POS's convertible note is November 5, 2024.

How does the new agreement affect interest payments for GBOX?

Under the new agreement, starting October 3, 2022, GreenBox may issue shares of common stock instead of cash for interest payments, unless specified otherwise.

What is the financial impact of the new convertible note agreement for GBOX?

The agreement aims to mitigate risk and improve cash flow, allowing GreenBox to focus on long-term growth and M&A opportunities.

When was the original convertible note financing agreement entered into by GBOX?

The original convertible note financing agreement was entered into on November 2, 2021.