Propellus Completes Capital Restructure

Rhea-AI Summary

Propellus Inc. (PRPS) announces successful conversion of preferred shares to common shares, resulting in the issuance of over 4 million new common shares. Founding principals exchange 5.5 million common shares for newly created Series C Convertible Preferred Shares, reducing outstanding common shares by 62%.

RED BANK, NJ / ACCESSWIRE / March 14, 2024 / Propellus Inc., an Oklahoma corporation, (OTC PINK:PRPS), an alternative finance company that specializes in assisting small businesses with their cash flow needs, announced today that Shareholders of its Series A Convertible Preferred had opted to convert 3,568.4 or 97.4% of the issued shares at $1.80 per share resulting in the issuance of 2,271,779 new common share, and, Shareholders of its Series B Convertible Preferred had opted to convert 3,288.7 or 90.5% of the issued shares at $1.80 per share resulting in the issuance of 1,827,121 new common shares. Additionally, it had canceled 5.5 million of its common shares owned by founding principals and exchanged them for newly created Series C Convertible Preferred Shares. The Series C Shares contain similar provisions as the Company's common shares, with the exception that the Series C shares will not be entitled to receive any dividends declared by its Board of Directors.

"We are extremely pleased that the vast majority of our preferred shareholders exhibited confidence in our plan and converted their preferred shares into common shares," stated Ralph Johnson, CEO. "To further demonstrate our commitment to the growth of the Company, management and one of our largest founding shareholders exchanged 5.5 million shares of common shares for a newly created Preferred that will not be entitled to receive dividends, thus reducing the common shares issued and outstanding from 14,486,016 to 8,986,016, or a 62% reduction."

About Propellus Inc.: Propellus Inc., is engaged in offering small businesses a variety of financing alternatives ranging in amounts between $20,000-$125,000. Such financings include: payroll advances directly and through third-party professional employer organizations, merchant cash advances, accounts receivable factoring, short-term line of credit loans, and other types of loan products and cash flow financing.

Contact:

Propellus Investor Relations
(212) 220-9755
info@propelluscorp.com

SOURCE: Propellus, Inc.

View the original press release on accesswire.com

FAQ

How many preferred shares were converted to common shares by Propellus Inc. (PRPS)?

Shareholders of Series A Convertible Preferred converted 97.4% of issued shares, resulting in 2,271,779 new common shares. Shareholders of Series B Convertible Preferred converted 90.5% of issued shares, resulting in 1,827,121 new common shares.

What was the price per share for the conversion of preferred shares to common shares by Propellus Inc. (PRPS)?

The price per share for the conversion of preferred shares to common shares by Propellus Inc. (PRPS) was $1.80.

How many common shares were canceled and exchanged for newly created Series C Convertible Preferred Shares by Propellus Inc. (PRPS)?

Propellus Inc. (PRPS) canceled 5.5 million common shares owned by founding principals and exchanged them for newly created Series C Convertible Preferred Shares.

What is the difference between Series C Convertible Preferred Shares and common shares of Propellus Inc. (PRPS)?

Series C Convertible Preferred Shares of Propellus Inc. (PRPS) are similar to common shares but do not entitle the shareholders to receive any dividends declared by the Board of Directors.

How much did the outstanding common shares of Propellus Inc. (PRPS) reduce by after the exchange of 5.5 million common shares for Series C Convertible Preferred Shares?

The outstanding common shares of Propellus Inc. (PRPS) reduced from 14,486,016 to 8,986,016, representing a 62% reduction.