RYVYL Pays Initial $13.0 Million Tranche to Securityholder to Retire All Outstanding Series B Convertible Preferred Stock and Majority of 8% Senior Convertible Note
RYVYL Inc. (NASDAQ: RVYL) has made a significant financial move by paying an initial $13.0 million tranche to a securityholder on January 27, 2025. This payment has accomplished two major objectives: the complete redemption of the Company's Series B Convertible Preferred Stock (which had a liquidation value of $53.1 million) and a substantial reduction of their 8% Senior Convertible Note from $18.3 million to $4.0 million.
The remaining $4.0 million is due by April 30, 2025. Until then, the company has temporarily suspended interest payments on the remaining balance, the securityholder's conversion rights, and certain restrictive covenants. These conditions will be reinstated if RYVYL fails to pay the second tranche by the deadline.
According to CFO George Oliva, these transactions significantly reduce conversion overhang and dilution risk to common stock, with the balance sheet restructuring expected to be highly anti-dilutive and beneficial to stockholders while lowering capital costs for 2025 growth investments.
RYVYL Inc. (NASDAQ: RVYL) ha compiuto una mossa finanziaria significativa pagando una tranche iniziale di $13,0 milioni a un detentore di titoli il 27 gennaio 2025. Questo pagamento ha raggiunto due obiettivi principali: il completo rimborso delle azioni privilegiate convertibili di Serie B della Società (che avevano un valore di liquidazione di $53,1 milioni) e una sostanziale riduzione della loro Nota Convertibile Senior dell'8%, da $18,3 milioni a $4,0 milioni.
Il rimanente importo di $4,0 milioni scade entro il 30 aprile 2025. Fino ad allora, la società ha temporaneamente sospeso i pagamenti degli interessi sul saldo rimanente, i diritti di conversione del detentore dei titoli e alcune clausole restrittive. Queste condizioni saranno ripristinate se RYVYL non riuscirà a pagare la seconda tranche entro la scadenza.
Secondo il CFO George Oliva, queste transazioni riducono significativamente il sovraccarico di conversione e il rischio di diluizione delle azioni ordinarie, con la ristrutturazione del bilancio che si prevede sarà altamente anti-diluitiva e vantaggiosa per gli azionisti, abbassando allo stesso tempo i costi del capitale per gli investimenti di crescita nel 2025.
RYVYL Inc. (NASDAQ: RVYL) ha hecho un movimiento financiero significativo al pagar un tramo inicial de $13,0 millones a un tenedor de valores el 27 de enero de 2025. Este pago ha logrado dos objetivos principales: el reembolso completo de las Acciones Preferentes Convertibles de Serie B de la Compañía (que tenían un valor de liquidación de $53,1 millones) y una reducción sustancial de su Nota Convertible Senior del 8%, de $18,3 millones a $4,0 millones.
El monto restante de $4,0 millones vence el 30 de abril de 2025. Hasta entonces, la compañía ha suspendido temporalmente los pagos de intereses sobre el saldo restante, los derechos de conversión del tenedor de valores y ciertas cláusulas restrictivas. Estas condiciones se restablecerán si RYVYL no paga el segundo tramo antes de la fecha límite.
Según el CFO George Oliva, estas transacciones reducen significativamente el exceso de conversión y el riesgo de dilución de las acciones comunes, y se espera que la reestructuración del balance sea altamente anti-dilutiva y beneficiosa para los accionistas, al tiempo que reduce los costos de capital para las inversiones en crecimiento de 2025.
RYVYL Inc. (NASDAQ: RVYL)는 2025년 1월 27일에 보유자에게 초기 $1300만의 트랜치를 지급하여 중요한 재정적 결정을 내렸습니다. 이 지급은 두 가지 주요 목표를 달성했습니다: 회사의 B 시리즈 전환 우선주(청산 가치가 $5310만)의 완전 상환과 8% 선순위 전환사채의 $1830만에서 $400만으로의 대폭 축소입니다.
잔여 $400만은 2025년 4월 30일까지 지급되어야 합니다. 그때까지 회사는 잔액에 대한 이자 지급과 보유자의 전환권 및 특정 제한 조항을 일시 중지했습니다. RYVYL이 기한 내 두 번째 트랜치를 지급하지 않을 경우 이 조건은 복원될 것입니다.
재무 책임자 George Oliva에 따르면, 이러한 거래는 전환 과잉과 보통주에 대한 희석 위험을 크게 줄이고, 재무제표의 구조 조정이 높은 비희석 효과를 발휘할 것으로 예상되며, 주주에게 유리하고 2025년 성장 투자를 위한 자본 비용을 낮추게 될 것입니다.
RYVYL Inc. (NASDAQ: RVYL) a réalisé un mouvement financier important en effectuant un versement initial de 13,0 millions de dollars à un détenteur de titres le 27 janvier 2025. Ce paiement a atteint deux objectifs majeurs : le remboursement complet des actions privilégiées convertibles de la Série B de la Société (qui avaient une valeur de liquidation de 53,1 millions de dollars) et une réduction considérable de leur Note Convertible Senior à 8 %, passant de 18,3 millions à 4,0 millions de dollars.
Le montant restant de 4,0 millions de dollars doit être réglé d'ici le 30 avril 2025. En attendant, la société a temporairement suspendu les paiements d'intérêts sur le solde restant, les droits de conversion du détenteur de titres et certaines clauses restrictives. Ces conditions seront rétablies si RYVYL ne paie pas la deuxième tranche dans les délais.
Selon le CFO George Oliva, ces transactions réduisent considérablement le surcroît de conversion et le risque de dilution des actions ordinaires, avec une restructuration du bilan qui devrait être fortement anti-dilutive et bénéfique pour les actionnaires, tout en réduisant les coûts du capital pour les investissements de croissance de 2025.
RYVYL Inc. (NASDAQ: RVYL) hat einen bedeutenden finanziellen Schritt gemacht, indem es am 27. Januar 2025 eine anfängliche Tranche von 13,0 Millionen US-Dollar an einen Gläubiger gezahlt hat. Diese Zahlung hat zwei Hauptziele erreicht: die vollständige Rückzahlung der Unternehmensanteile der Serie B gegenüber Vorzugsaktien (die einen Liquidationswert von 53,1 Millionen US-Dollar hatten) und eine erhebliche Reduzierung ihrer 8%-Senior-Convertible-Anleihe von 18,3 Millionen auf 4,0 Millionen US-Dollar.
Die verbleibenden 4,0 Millionen US-Dollar sind bis zum 30. April 2025 fällig. Bis dahin hat das Unternehmen die Zinszahlungen auf den verbleibenden Betrag, die Umwandlungsrechte des Gläubigers und bestimmte einschränkende Vereinbarungen vorübergehend ausgesetzt. Diese Bedingungen werden wiederhergestellt, falls RYVYL die zweite Tranche bis zur Frist nicht zahlt.
Laut CFO George Oliva reduzieren diese Transaktionen erheblich den Umwandlungsüberhang und das Verdünnungsrisiko für Stammaktien, wobei die Umstrukturierung der Bilanz voraussichtlich stark verdünnungshemmend und vorteilhaft für die Aktionäre sein wird, während gleichzeitig die Kapitalkosten für Wachstumsinvestitionen im Jahr 2025 gesenkt werden.
- Complete redemption of Series B Convertible Preferred Stock worth $53.1 million
- Significant reduction of Senior Convertible Note from $18.3M to $4.0M
- Temporary suspension of interest payments and conversion rights
- Reduction in potential stock dilution risk
- Expected lower cost of capital for 2025
- Remaining $4.0M payment due by April 30, 2025
- Risk of reinstatement of interest payments and conversion rights if second tranche isn't paid on time
Insights
RYVYL's strategic $13.0 million debt restructuring marks a pivotal financial transformation that significantly strengthens its capital structure. The elimination of the Series B Convertible Preferred Stock, which carried a substantial
Key Financial Implications:
- The transaction removes a substantial overhang that could have led to significant dilution of common stockholders through potential conversions
- The temporary suspension of interest payments and conversion rights on the remaining
$4.0 million note provides immediate cash flow relief - The April 30, 2025 deadline for the remaining payment creates a clear timeline for complete debt resolution
Critical Considerations:
- The company must ensure sufficient liquidity to meet the
$4.0 million April payment to avoid reactivation of interest payments and conversion rights - This restructuring could improve RYVYL's ability to raise future capital on more favorable terms due to the cleaner balance sheet
- The timing suggests management's confidence in the company's cash flow generation capacity and growth trajectory for 2025
This financial maneuver demonstrates management's proactive approach to capital structure optimization, potentially positioning RYVYL for stronger growth opportunities while protecting shareholder value. However, investors should closely monitor the company's ability to meet the April payment deadline, as failure to do so could reintroduce the previously suspended terms and impact the overall success of this restructuring initiative.
SAN DIEGO, CA, Jan. 28, 2025 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has paid the initial tranche of
- Redeemed of all shares of the Company’s Series B Convertible Preferred Stock (“Preferred Stock”), for which the liquidation value was
$53.1 million . - Partially repaid the
8% Senior Convertible Note held by the securityholder (“Note”), reducing the outstanding principal from$18.3 million to$4.0 million , which is due on or before April 30, 2025, and also temporarily suspended (i) the Company’s requirement to pay interest on the remaining principal balance of the Note, (ii) the securityholder’s right to convert the Note and (iii) certain restrictive covenants contained in the Note, all of which would be restored if the Company does not pay the second tranche of$4.0 million by April 30, 2025.
“These transactions eliminate a large portion of the conversion overhang and substantial dilution risk to our common stock from both the Preferred Stock and Note,” said George Oliva, CFO of RYVYL. “We expect the net gain from this balance sheet restructuring to be highly anti-dilutive; thus, benefitting the common stockholders and lowering our overall cost of capital as we invest in our growth in 2025.”
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 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 timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and 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, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com
FAQ
How much did RYVYL (RVYL) pay in its initial tranche to retire preferred stock?
What is the remaining balance RVYL needs to pay on its Senior Convertible Note?
What happens if RVYL doesn't pay the second tranche by April 30, 2025?
How much was the liquidation value of RVYL's Series B Convertible Preferred Stock?
What are the benefits of RVYL's debt restructuring for shareholders?
