RYVYL Amends MOU to Adjust Timing of First Tranche Payment to Investor to Retire 8% Senior Convertible Note and Series B Convertible Preferred Stock
RYVYL Inc. has amended its non-binding Memorandum of Understanding (MOU) regarding the repayment of an 8% Senior Convertible Note and redemption of Series B Convertible Preferred Stock. The amendment extends the first tranche payment deadline of $12.8 million to November 29, 2024. While the company will make efforts to secure the necessary financing, there is no guarantee of success in raising the funds or finalizing the Definitive Agreements with the investor, as the MOU is non-binding.
RYVYL Inc. ha modificato il suo Memorandum of Understanding (MOU) non vincolante riguardante il rimborso di un 8% Senior Convertible Note e il riscatto di Series B Convertible Preferred Stock. La modifica estende la scadenza per il primo pagamento della tranche di $12,8 milioni al 29 novembre 2024. Sebbene l'azienda si impegnerà a ottenere il finanziamento necessario, non c'è garanzia di successo nella raccolta dei fondi o nella finalizzazione degli Accordi Definitivi con l'investitore, poiché il MOU è non vincolante.
RYVYL Inc. ha modificado su Memorando de Entendimiento (MOU) no vinculante respecto al reembolso de un 8% Senior Convertible Note y al canje de Series B Convertible Preferred Stock. La modificación extiende la fecha límite para el primer pago de la tranche de $12.8 millones hasta el 29 de noviembre de 2024. Aunque la empresa hará esfuerzos para asegurar el financiamiento necesario, no hay garantía de éxito en la recaudación de los fondos o en la finalización de los Acuerdos Definitivos con el inversionista, ya que el MOU no es vinculante.
RYVYL Inc.는 8% 전환사채의 상환 및 Series B 전환 우선주의 상환에 관한 비구속적 양해각서(MOU)를 수정했습니다. 수정된 내용은 1,280만 달러의 첫 번째 지급 마감일을 2024년 11월 29일로 연장합니다. 회사는 필요한 자금을 확보하기 위해 노력할 것이지만, 자금을 모으거나 투자자와의 최종 계약을 확정할 수 있다는 보장은 없으며, MOU는 비구속적입니다.
RYVYL Inc. a modifié son Protocole d'accord (MOU) non contraignant concernant le remboursement d'une obligation convertible senior à 8% et le rachat d'actions privilégiées convertibles de série B. La modification prolonge la date limite de paiement de la première tranche de 12,8 millions de dollars jusqu'au 29 novembre 2024. Bien que la société fera des efforts pour obtenir le financement nécessaire, il n'y a aucune garantie de succès dans la collecte des fonds ou dans la finalisation des Accords Définitifs avec l'investisseur, car le MOU n'est pas contraignant.
RYVYL Inc. hat ihr unverbindliches Memorandum of Understanding (MOU) bezüglich der Rückzahlung einer 8% Senior Convertible Note und der Einlösung von Series B Convertible Preferred Stock geändert. Die Änderung verlängert die Frist für die erste Tranchezahlung von 12,8 Millionen Dollar auf den 29. November 2024. Während das Unternehmen bemüht sein wird, die erforderliche Finanzierung zu sichern, gibt es keine Garantie für den Erfolg bei der Beschaffung der Mittel oder der Finalisierung der Definitiven Vereinbarungen mit dem Investor, da das MOU unverbindlich ist.
- None.
- Extension of payment deadline indicates potential financing difficulties
- Uncertainty in securing $12.8 million funding by November 29, 2024
- Non-binding nature of MOU creates additional uncertainty for debt retirement plan
Insights
The amended MOU for RYVYL's debt restructuring reveals concerning financial challenges. The extension of the
The non-binding nature of the MOU adds another layer of uncertainty, as there's no guarantee of reaching definitive agreements even if funding is secured. This development could significantly impact the company's capital structure and financial stability. The combination of convertible notes and preferred stock retirement would typically be positive for reducing debt burden, but the execution risk here is substantial given the company's current market value.
SAN DIEGO, CA, Nov. 20, 2024 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, amended the previously announced non-binding Memorandum of Understanding (the “MOU”) for the full repayment and termination of an
The Company will use its reasonable best efforts to raise the financing required, but there is no assurance that it will be able to do so by November 29, 2024. Even if the Company does raise sufficient funds, since the MOU is not binding, there is no assurance that the Company will be able to enter into the Definitive Agreements with the Investor.
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes 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. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee's ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries - particularly industries with heightened cash reporting obligations and restrictions - as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company's periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.
IR Contact: David Barnard, LHA Investor Relations, 415-433-3777, RYVYL@lhai.com
FAQ
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