RYVYL Extends its Obligation to Repay Convertible Note to April 2026
RYVYL (NASDAQ: RVYL) has entered into an Agreement with an existing noteholder to extend the repayment obligation of its 8% Senior Convertible Note to April 5, 2026. This extension includes a cash payment of $80,000 as an advance on the next interest payment due October 1, 2024. The principal amount outstanding remains $19.1 million. This move aims to enhance the company's financial flexibility and support growth in international markets. The company emphasizes its commitment to strong financial partnerships and long-term success.
- Extension of debt repayment to April 2026 enhances financial flexibility.
- Prepayment of $80,000 demonstrates commitment to financial obligations.
- Support from noteholder indicates confidence in the company.
- Allows RYVYL to focus on growth in multiple international markets.
- Total of $19.1 million in principal remains outstanding.
- Additional cash outflow of $80,000 for advance interest payment.
- Potential strain on cash reserves due to extended debt obligation.
Insights
RYVYL's extension of its repayment obligation to April 2026 can be seen as a strategic move to enhance its financial stability. By delaying the $19.1 million principal repayment and making a $80,000 advance payment for the next interest due on October 1, 2024, the company aims to maintain liquidity and direct funds towards growth initiatives.
From a financial perspective, the extension indicates strong support from the Noteholder, which can be perceived as a positive signal to the market. However, it's important to note that the company still carries significant debt, which could impact future profitability and cash flow. Investors should be cautious about the potential risks associated with this debt, especially given the volatile nature of the payment technology industry.
In the short term, this extension provides breathing room for RYVYL to invest in its operations and potential market expansions. Long-term implications depend heavily on the company's ability to generate enough cash flow to meet its obligations by the new due date.
Extending the debt repayment timeline aligns with RYVYL's strategy of leveraging its blockchain and electronic payment solutions to capture diverse international markets. The company's decision to prioritize this extension over immediate repayment reflects its confidence in future market opportunities and potential revenue streams.
In terms of market perception, this move could be seen as a double-edged sword. On one hand, it demonstrates financial prudence and a focus on long-term growth. On the other hand, it could raise concerns about the company's ability to manage its debt effectively and generate sufficient revenue to cover its liabilities.
Investors should monitor RYVYL's market performance closely, especially its success in penetrating new markets and achieving consistent revenue growth. The company's ability to innovate and remain competitive in a rapidly evolving industry will be important for its long-term financial health.
SAN DIEGO, CA, May 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, entered into an Agreement with an existing noteholder (the “Noteholder”) of its
Under the terms of the Agreement, in consideration for the Noteholder’s agreement to further extend the Company’s repayment obligation under the Note by an additional year, the Company will make a cash payment of
“Extending our debt repayment obligation demonstrates the continued confidence and support of our Noteholder and strengthens our financial flexibility as we continue driving growth in multiple verticals across diverse international markets. Prepaying a portion of the scheduled interest payment underscores our commitment to maintaining strong relationships with our financial partners and our focus on investing in the Company's long-term success,” said RYVYL Chairman Ben Errez.
Additional information can be found in the Company's Current Report on Form 8-K filed today with the Securities and Exchange Commission, and available on RYVYL's Investor Relations website https://investors.ryvyl.com/financials/sec-filings/
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 token technology for the 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 of the filing of the aforementioned periodic reports and are characterized 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 completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the SEC. Other risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new 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
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