EzFill Holdings Executes Debt Restructuring and Investments
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EzFill Holdings, Inc. Announces Strategic Transactions
Converts $13.5 Million of Debt to Equity
NextNRG Invests an Additional $1.4 Million
EzFill Holdings, Inc. (“EzFill” or the “Company”) (NASDAQ: EZFL), a pioneer and leader in the mobile fueling industry, has announced a range of strategic transactions designed to strengthen its financial position and ensure compliance with Nasdaq listing requirements, pending their confirmation. These transactions have effectively left the Company nearly debt-free, apart from a small outstanding loan, current payables, and specific vehicle financing, while significantly enhancing the Company’s cash position. The debt conversions alone are projected to reduce annual interest expenses by approximately $1.2 million.
Investment by NextNRG
EzFill has entered into a Stock Purchase Agreement with NextNRG Holding Corp (“Next”). Under this agreement, Next purchased 140,000 shares of EzFill’s Series B Convertible Preferred Stock at $10.00 per share, resulting in a total investment of $1,400,000.
Debt-to-Equity Conversion
In a separate agreement, EzFill executed two significant debt-to-equity conversions, turning around $13.5 million of debt into equity. The first involved the exchange of certain promissory notes from EzFill to Next, converting them into 3,525,341 shares of common stock at the Nasdaq minimum price of $2.78 per share. Furthermore, additional promissory notes from EzFill to AJB Capital Investments were converted into 363,000 shares of Series A Preferred Stock in EzFill.
Regulatory Filings and Future Growth
With these agreements, EzFill has also filed certificates of designation for 513,000 shares of Series A Preferred Stock and 150,000 shares of Series B Convertible Preferred Stock with the Delaware Department of State.
CEO Yehuda Levy expressed satisfaction in securing the $1.4 million investment and executing the debt-to-equity conversions, stating, “We believe that eliminating nearly all of our debt and adding cash to our balance sheet sets the foundation for future growth and profitability. These steps will assist us in regaining compliance with Nasdaq’s minimum equity requirement and position us to complete the acquisition of NextNRG while furthering our strategic business plan.”
Market Insights and Competitive Landscape
NextNRG CEO Michael D. Farkas commented that these transactions set a strong foundation for EzFill to proceed with acquiring NextNRG and advancing company growth. He highlighted that EzFill is at a crucial inflection point, noting the decline of gas stations and the consumer demand for timely delivery, which EzFill effectively addresses. The company has reported impressive revenue growth, exceeding 100% in 2022 and over 50% in 2023. Farkas believes that EzFill’s public valuation does not reflect its true potential compared to private competitors such as Booster and Yoshi, suggesting a promising outlook for EzFill's valuation.
About EzFill
EzFill is a leader in the expanding mobile fuel industry, holding the largest market share in Florida. Its mission is to revolutionize the gas station fueling model by offering consumers and businesses convenient, safe, and touch-free on-demand fueling services at their locations. The service enables commercial and specialty customers to commence operations with fully fueled vehicles during downtimes. As major corporate players recognize shifting consumer behavior, they are investing in the on-demand mobile fueling sector, and EzFill is strategically poised to leverage this growing demand for efficient and cost-effective fueling solutions.
Frequently Asked Questions
What strategic transactions has EzFill completed?
EzFill has completed a series of strategic transactions including a major debt-to-equity conversion and an investment from NextNRG.
How much debt has EzFill converted to equity?
EzFill has converted approximately $13.5 million of debt into equity through two significant agreements.
What is the impact of these transactions on EzFill’s financial position?
The transactions have significantly improved EzFill’s cash position and are expected to nearly eliminate annual interest expenses of about $1.2 million.
Who is the CEO of EzFill?
The CEO of EzFill is Yehuda Levy, who is optimistic about the company’s future growth and profitability.
What sector is EzFill part of?
EzFill operates in the mobile fueling industry, providing on-demand fuel delivery services across consumer, commercial, and specialty markets.
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