Payfare Initiates Strategic Review Process to Enhance Value
Payfare Inc. (TSX: PAY, OTCQX: PYFRF), a leading Earned Wage Access company, has initiated a strategic review process to explore options for enhancing value. The review, assisted by outside advisors, will consider alternatives such as strategic partnerships, investments, acquisitions, or potential sale. Payfare remains committed to executing its current business strategy and supporting ongoing programs.
Key points:
- Keefe, Bruyette & Woods Inc. (KBW) engaged as financial advisor
- Support for DasherDirect program continues through early 2025
- Long-term renewals executed with Uber and Lyft in 2024
- Over $100 million in cash and equivalents to support future growth
- Company plans to align operating expenses with expected revenue reduction
The Board emphasizes that there is no set timeline for the review's completion and no assurance of any specific transaction or outcome.
Payfare Inc. (TSX: PAY, OTCQX: PYFRF), una delle principali aziende di accesso agli stipendi guadagnati, ha avviato un processo di revisione strategica per esplorare opzioni per migliorare il valore. La revisione, assistita da consulenti esterni, prenderà in considerazione alternative come partnership strategiche, investimenti, acquisizioni o potenziale vendita. Payfare rimane impegnata nell’esecuzione della propria strategia aziendale attuale e nel supporto dei programmi in corso.
Punti chiave:
- Keefe, Bruyette & Woods Inc. (KBW) ingaggiata come consulente finanziario
- Supporto al programma DasherDirect continua fino all'inizio del 2025
- Rinnovi a lungo termine conclusi con Uber e Lyft nel 2024
- Oltre 100 milioni di dollari in contante e equivalenti per supportare la crescita futura
- L'azienda prevede di allineare le spese operative con la riduzione delle entrate previste
Il Consiglio sottolinea che non è stato stabilito alcun termine per il completamento della revisione e non ci sono garanzie riguardo a transazioni o risultati specifici.
Payfare Inc. (TSX: PAY, OTCQX: PYFRF), una de las principales empresas de Acceso a Salarios Ganados, ha iniciado un proceso de revisión estratégica para explorar opciones que mejoren su valor. La revisión, asistida por asesores externos, considerará alternativas como asociaciones estratégicas, inversiones, adquisiciones o posible venta. Payfare sigue comprometida con la ejecución de su estrategia comercial actual y el apoyo a los programas en curso.
Puntos clave:
- Keefe, Bruyette & Woods Inc. (KBW) fue contratada como asesor financiero
- El apoyo al programa DasherDirect continúa hasta principios de 2025
- Renovaciones a largo plazo firmadas con Uber y Lyft en 2024
- Más de 100 millones de dólares en efectivo y equivalentes para respaldar el crecimiento futuro
- La empresa planea alinear los gastos operativos con la reducción esperada de ingresos
La Junta enfatiza que no hay un cronograma establecido para la finalización de la revisión y que no hay garantía de ninguna transacción o resultado específico.
Payfare Inc. (TSX: PAY, OTCQX: PYFRF)는 선두적인 근로소득 접근 회사로서 가치 증대를 위한 전략적 검토 프로세스를 시작했습니다. 외부 자문으로 지원되는 이번 검토에서는 전략적 파트너십, 투자, 인수 또는 잠재적 매각과 같은 대안을 고려할 것입니다. Payfare는 현재 비즈니스 전략을 실행하고 진행 중인 프로그램을 지원하는 데 전념하고 있습니다.
주요 사항:
- Keefe, Bruyette & Woods Inc. (KBW)가 재무 자문사로 참여
- DasherDirect 프로그램 지원은 2025년 초까지 계속
- 2024년에 Uber 및 Lyft와 장기 갱신 계약 체결
- 미래 성장을 지원하기 위해 1억 달러 이상의 현금 및 현금 등가물 보유
- 회사는 예상 수익 감소에 맞춰 운영 비용을 조정할 계획
이사회는 검토 완료에 대한 구체적인 일정이 없으며 특정 거래나 결과에 대한 보장이 없음을 강조합니다.
Payfare Inc. (TSX: PAY, OTCQX: PYFRF), une entreprise leader dans l'accès aux salaires gagnés, a lancé un processus de réexamen stratégique pour explorer des options visant à améliorer sa valeur. Le réexamen, assisté par des conseillers externes, envisagera des alternatives telles que des partenariats stratégiques, des investissements, des acquisitions ou une vente potentielle. Payfare reste engagée à exécuter sa stratégie commerciale actuelle et à soutenir les programmes en cours.
Points clés :
- Keefe, Bruyette & Woods Inc. (KBW) engagé en tant que conseiller financier
- Le soutien au programme DasherDirect se poursuit jusqu'au début de 2025
- Des renouvellements à long terme signés avec Uber et Lyft en 2024
- Plus de 100 millions de dollars en espèces et équivalents pour soutenir la croissance future
- L'entreprise prévoit d'aligner ses dépenses d'exploitation sur la réduction des revenus attendue
Le conseil souligne qu'il n'y a pas de calendrier défini pour la finalisation de l'examen et aucune garantie d'une transaction ou d'un résultat spécifique.
Payfare Inc. (TSX: PAY, OTCQX: PYFRF), ein führendes Unternehmen für den Zugang zu verdienten Löhnen, hat einen strategischen Überprüfungsprozess initiiert, um Optionen zur Wertsteigerung zu prüfen. Die Überprüfung, unterstützt von externen Beratern, wird Alternativen in Betracht ziehen, wie strategische Partnerschaften, Investitionen, Akquisitionen oder einen potenziellen Verkauf. Payfare bleibt entschlossen, ihre aktuelle Geschäftsstrategie umzusetzen und laufende Programme zu unterstützen.
Wichtige Punkte:
- Keefe, Bruyette & Woods Inc. (KBW) wurde als Finanzberater engagiert
- Die Unterstützung für das DasherDirect-Programm wird bis Anfang 2025 fortgesetzt
- Langfristige Verlängerungen mit Uber und Lyft wurden 2024 abgeschlossen
- Über 100 Millionen Dollar in Bar und Äquivalenten zur Unterstützung des zukünftigen Wachstums
- Das Unternehmen plant, die Betriebskosten mit den erwarteten Einnahmerückgängen in Einklang zu bringen
Der Vorstand betont, dass es keinen festgelegten Zeitrahmen für den Abschluss der Überprüfung gibt und keine Garantie für eine spezifische Transaktion oder ein spezifisches Ergebnis gegeben ist.
- Long-term renewal of agreement with Lyft Inc. for Lyft Direct program
- Launch of Uber Pro Card in Canada, with active users increasing five-fold compared to legacy program
- Over $100 million in cash, cash equivalents, and guaranteed investment certificates available
- Active Lyft Direct users increased by more than 50% year to date
- Loss of DasherDirect program will have a substantial impact on the Company's revenue profile
- Need to right-size operating expenses due to expected near to mid-term reduction in revenues
The foundation, funding, and execution of Payfare's ongoing programs remain secure with a robust pipeline of potential new opportunities in the gig economy and EWA space. To support conversion of these new opportunities and alleviate concentration risk, the Board has decided to initiate a strategic review to accelerate these goals. During this process, Payfare remains focused on executing its current business strategy and will continue to provide industry-leading financial solutions for its clients and cardholders. This review process will assess strategic alternatives that may include, but are not limited to strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination.
In conducting the strategic review, the Company's Board and management team are committed to acting in the best interests of the Company, its shareholders and its stakeholders. There is no deadline or definitive timetable for the completion of the strategic review and Payfare does not intend to comment further unless the Board has approved a specific transaction or otherwise determined that disclosure is necessary or appropriate. There can be no assurances that the strategic review will result in any specific transaction or outcome.
Advisor
The Board has engaged Keefe, Bruyette & Woods Inc. (KBW) as financial advisor to assist with the strategic review process.
Support for DasherDirect Program and Cardholders Through Early 2025
Payfare is proud to have built DasherDirect, an award-winning digital banking solution providing cardholders with free instant pay, cashback rewards, and other meaningful benefits. Since inception, the program has successfully serviced millions of cardholders and processed billions of dollars of transactions. The level of adoption, user reviews, and app store ratings, including its consistent position as the top finance app as ranked by unitQ, demonstrates both the value proposition to cardholders and Payfare's ability to deliver a best-in-class user experience. Payfare will continue its role as a good partner supporting the DasherDirect program and cardholders through early 2025.
Long-Term Client Renewals with Uber and Lyft Executed in 2024
On July 25, 2024, the Company announced the long-term renewal of its agreement with Lyft Inc. to power the Lyft Direct program. The renewal allows drivers on the Lyft platform to continue benefiting from free instant pay, a feature-rich digital banking product and cashback rewards for years to come. Subsequent to the extension, Payfare also announced new value-added product enhancements to Lyft Direct including Balance Protection, Lyft Direct Savings, and more. Active Lyft Direct users have increased by more than fifty percent year to date, demonstrating the ongoing success of the program.
On March 5, 2024, the Company announced the launch of the Uber Pro Card, a new program with Uber providing free instant payouts after every trip or delivery, enhanced loyalty features for drivers and delivery people, and backup balance for qualifying users on the Uber platform in
Well-Funded to Support Future Growth
Payfare has over
About Payfare (TSX:PAY, OTCQX: PYFRF)
Payfare is a leading, international Earned Wage Access ("EWA") company powering instant access to earnings through an award-winning digital banking platform for today's workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms, and employers to provide financial security and inclusion for all workers.
Cautionary Statement Regarding Forward Looking Information
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Payfare's current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include, without limitation the strategic review process and timing and length of such process, exploring potential options including strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination, execution of Payfare's current business strategy and continued provision of industry-leading financial solutions for its clients and cardholders, support for the DasherDirect program and cardholders through early 2025, the impact of the loss of the DasherDirect program to the Company's revenue profile, intentions to right size operating expenses and impacts to Payfare's liquidity position, and executing on new opportunities and initiatives. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.
Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such risks include the factors discussed from time to time in Payfare's filings with the Canadian Securities Authorities, copies of which can be found under Payfare's profile on the SEDAR+ website at www.sedarplus.ca. In addition, there is risk that opportunities identified through the strategic review may take longer than anticipated or may not be a fit or appropriate for the Company or will not be at terms that are acceptable to the Company, and right sizing efforts may not have the intended impacts as expected by management on its liquidity.
Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Payfare undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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SOURCE Payfare Inc.
FAQ
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