SRAX Secures Revolving Credit Facility and Launches Stock Portfolio Tracker

Rhea-AI Summary

SRAX, a financial technology company, has entered into a revolving credit facility worth up to $9.5 million over two years. This facility allows borrowing based on cash and up to 70% of the marketable securities market value, with repayments tied to sales from Sequire customers. Additionally, SRAX launched a website enabling investors to track the market value of its $32.6 million securities portfolio. The company plans to file its 10-K report soon, stating no significant deviations in its financial statements.

Positive

• Secured a $9.5 million revolving credit facility to manage cash flow effectively.
• Launched a website for tracking marketable securities portfolio valued at approximately $32.6 million.
• Anticipation of timely filing for the 10-K report with no significant deviations in financial statements.

Negative

• None.

LOS ANGELES, Aug. 15, 2022 (GLOBE NEWSWIRE) -- SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, has announced the company has entered into a revolving credit facility and launched a website that allows investors to track the current value of the company's marketable securities portfolio.

The revolving credit facility allows the company to draw up to $9.5M over the next 2 years. The borrowing base of the Credit Facility is determined by the company's cash and up to 70% of the market value of the marketable securities held by the company, not to exceed $9.5M. The repayment of the Credit Facility is based on a percentage of the sales of the marketable securities from Sequire customers. The amount of the Credit Facility which is outstanding is convertible into common shares at $15 per share. It also requires the company to repurchase a minimum of $1M worth of SRAX’s stock under $5 per share.

For more detail on the Credit Facility please refer to the SRAX, Inc. 8K filed on August 14th, 2022.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1538217/000149315222022300/form8-k.htm

SRAX has also launched a website that allows investors to see the current market value of the company's stock portfolio. This site values positions on a price-times-quantity basis. It does not consider any liquidity discounts or premiums for resets and most favored nations clauses in these agreements. As of this press release, the market value of the portfolio is approximately $32.6M. The site will allow investors to see both the value of the portfolio as well as what is currently unrestricted, restricted, and what is sold per quarter. To learn more, please visit the link below.

https://srax.com/stock-portfolio

“We are working diligently with our auditors to get our 10K filled. As of this date, there are no significant deviations (+/- 3%) on the income statement that we presented in our annual update. Our auditors have told us they believe that we will be able to file in the next few weeks,” said Christopher Miglino, Founder and CEO of SRAX. “This new credit facility, from a long-term SRAX investor, allows us to better manage cash flow from the sales of our marketable securities and gives us the tools needed to optimize the value of these positions. We can draw down and pay back the facility as we sell securities, thus creating a favorable cash flow environment for the company. After reviewing the stock portfolio page, investors should be confident that we will be able to repay the facility with the existing portfolio,” added Miglino.

About SRAX
SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors’ behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com and sequire.com.

Cautionary Statement Regarding Forward-Looking Information:

This news release contains "forward-looking statements'' made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in our business, and our need for future capital. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in SRAX's periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2021, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

 

FAQ

What is SRAX's new credit facility about?

SRAX has secured a revolving credit facility of up to $9.5 million, allowing borrowing based on cash and marketable securities.

How does the credit facility affect SRAX's cash flow?

The credit facility enables SRAX to manage cash flow by tying repayments to sales of marketable securities from Sequire customers.

What is the current value of SRAX's marketable securities portfolio?

As of the press release, the market value of SRAX's marketable securities portfolio is approximately $32.6 million.

When will SRAX file its 10-K report?

SRAX expects to file its 10-K report in the coming weeks, stating that there are no significant deviations in its financial statements.