RDE, Inc. Strengthens Balance Sheet with Acquisition Note Payable Conversion Into Common Stock

Rhea-AI Summary

RDE, Inc. (OTCQB: RSTN) announced the conversion of a $1.5 million Acquisition Note and $0.3 million in accrued interest into equity, totaling $1.8 million, at a conversion price of $3.19 per share. This conversion significantly enhances the company’s balance sheet, improving shareholder equity by $1.8 million and reducing debt to $0.8 million. As of December 31, 2022, the company had a negative shareholder deficit of $3.0 million, which is now approaching positive territory. CEO Ketan Thakker expressed optimism about the company’s future and prospects for uplisting to a major national exchange.

Positive

• Conversion of $1.8 million improves shareholder equity and reduces debt to $0.8 million.
• Positioned for uplisting to a major national exchange.
• Strengthened balance sheet moving from a negative $3.0 million shareholder deficit to approaching positive equity.

Negative

• None.

ATLANTA, GA, March 09, 2023 (GLOBE NEWSWIRE) -- RDE, Inc. (OTCQB: RSTN) (the “Company”), the owner and operator of Restaurant.com, the nation’s largest restaurant-focused digital deals brand, is pleased to announce that its $1.5 million Acquisition Note plus $0.3 million accrued interest from its acquisition of Restaurant.com three years ago has been converted into equity at $3.19 per common share.

The $1.8 million conversion into equity improves the Company’s shareholder equity by $1.8 million and results in the Company having debt of only $0.8 million, $0.1 million GameIQ Acquisition Note and $0.7 million of Government Assistance Notes from Covid-19 Economic Injury/Disaster Loan Program, which is payable over 30 years.

Dr. Kenneth Chessick, MD, JD, a founder and former CEO of Restaurant.com says: “I continue to be excited about Restaurant.com, and look forward to its future success.”

Ketan Thakker, Chief Executive Officer of RDE, Inc., commented, “We are thrilled with this conversion, as it greatly enhances our balance sheet and puts us in better position to be able to uplist to a major national exchange. As of December 31, 2022, our balance sheet had a negative $3.0 million shareholder deficit, and now with this conversion we are approaching positive shareholder equity.”

About RDE, Inc.
RDE, Inc. (OTCQB: RSTN) (Restaurant, Dining and Entertainment) is a pioneer in the restaurant deal space and the nation’s largest restaurant-focused digital deals brand. Founded in 1999, Restaurant.com, Specials by Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deal options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our restaurant certificates and gift cards allow customers to save at thousands of restaurants across the country with just a few clicks.

For more information, visit: www.rdeholdings.com and https://www.restaurant.com.

Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed 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. Although RDE, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, RDE, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company’s ability identify a suitable business model for the corporation.

Investors Contacts:
ClearThink
nyc@clearthink.capital

FAQ

What is the significance of RDE, Inc.'s recent acquisition note conversion related to RSTN?

The conversion of the acquisition note into equity enhances RDE, Inc.'s shareholder equity by $1.8 million and significantly reduces its debt.

How does the acquisition note conversion affect RDE, Inc.'s financial health?

It improves the balance sheet, moving from a $3.0 million negative shareholder deficit closer to positive equity.

What are the future plans for RDE, Inc. after the recent financial changes?

The company aims to uplist to a major national exchange following the improvement in its balance sheet.

What is the current debt status of RDE, Inc. after the conversion?

After the conversion, RDE, Inc. has reduced its debt to $0.8 million.

What impact does the conversion have on RDE, Inc.'s shareholder equity?

The conversion of the acquisition note directly increases shareholder equity by $1.8 million.