SurgePays, Inc. Closes Bridge Financing

Rhea-AI Summary

SurgePays, Inc. (OTCQB: SURG) announced a $2.0 million bridge financing aimed at facilitating its up-listing to the Nasdaq and executing its business growth strategy. The funds will retire existing convertible debt and support the development of an outbound sales team focusing on prepaid products and other wholesale goods. The CEO highlighted the significance of this financing in expanding the company’s distribution network and increasing sales, particularly targeting the underbanked demographic.

Positive

• Secured $2.0 million in bridge financing to support growth.
• Funds will retire convertible debt, improving financial stability.
• Investment in sales and marketing initiatives expected to enhance revenue.
• Plans to grow distribution network and sales per store.

Negative

• None.

$2.0 Million Bridge Financing Paves the Way Toward Nasdaq Up-listing and Provides Capital for Continued Business Plan Execution

BARTLETT, Tenn., March 10, 2021 (GLOBE NEWSWIRE) -- SurgePays, Inc. (OTCQB: SURG) (“SurgePays” or the “Company”), a blockchain fintech company building a next generation supply chain network that offers wholesale goods and financial services for the underbanked more cost efficiently than traditional distribution models, today provides a corporate update to shareholders that includes the closing of a bridge debt financing with total proceeds of $2.0 million.

The proceeds from the bridge loan will be used to retire existing convertible debt and to invest in sales and marketing initiatives. The Company is building an outbound sales team in its Memphis office to grow in-store sales of prepaid products and other top selling wholesale products through enhanced relationship management. The SurgePays Prepaid Center and other products can be seen at www.surgepays.com

“The closing of this bridge marks another major milestone in the Company’s efforts to qualify for and up-list to the Nasdaq stock exchange,” commented SurgePays Chairman and CEO Brian Cox. “The timing of this financing is significant, as we expect our investments to result in the addition of more stores to our distribution network as well as increased sales per store. We are spearheading sales of additional SurgePays fintech products for the underbanked population and adding high margin wholesale products processed through our next-generation supply chain. This is a very exciting time for SurgePays, and we look forward to reporting additional accomplishments in the future.”

About SurgePays, Inc.

SurgePays, Inc. utilizes its blockchain software platform to offer a comprehensive suite of prepaid, financial services for the underbanked, and top selling wholesale products to independently owned convenience stores, mini-marts, tiendas, and bodegas more cost efficiently than existing wholesale distribution models. Please visit www.SurgePays.com for more information.

Company Contact:
Tony Evers CPA, CIA
Chief Financial Officer
Chief Operating Officer
847-648-7541
tevers@surgeholdings.com

Media Relations:
Jules Abraham
Director of Public Relations
CORE IR
917-885-7378
julesa@coreir.com

Investor Relations Contact:
CORE IR
Joseph Delahoussaye III
V.P. of Investor Relations
516-222-2560
invest@surgeholdings.com

Cautionary Note Regarding Forward-Looking Statements.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecasts," "forecasting," "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued demand for professional hiring, the accuracy of the Recruiter Index® survey, the impact of the COVID-19 pandemic on the job market and the economy as virus levels are again rising in many states, and the Risk Factors contained within our filings with the Securities and Exchange Commission (“SEC”), including on our Form S-1/A filed with the SEC on February 16, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future developments, or otherwise, except as may be required by law.

FAQ

What is the purpose of SurgePays' recent $2.0 million financing?

The financing aims to retire convertible debt and invest in sales and marketing initiatives.

How will SurgePays utilize the funds from the bridge financing?

The funds will be used to build an outbound sales team and enhance sales of prepaid and wholesale products.

What is SurgePays' goal with the bridge financing?

The goal is to facilitate an up-listing to the Nasdaq stock exchange.

What markets does SurgePays target with its services?

SurgePays targets the underbanked population with prepaid financial services and wholesale products.

What strategy is SurgePays implementing following the financing?

SurgePays is focusing on expanding its distribution network and increasing sales per store.