FlexShopper Plans Innovative Rights Offering for Shareholders
FlexShopper's Proposed Rights Offering Explained
FlexShopper, Inc. (NASDAQ: FPAY) is setting the stage for a significant financial move by introducing a proposed rights offering aimed at enhancing its capital structure. This initiative will not only strengthen the company's balance sheet but also provide an opportunity for existing shareholders to acquire additional stock.
Understanding the Rights Offering
The planned rights offering involves issuing two non-transferable basic subscription rights for each share of common stock owned on the designated record date. The subscription price is set at $1.70 per unit, making it an attractive option for shareholders looking to increase their stake in FlexShopper. Each unit will consist of a share of common stock along with various rights to acquire more shares at discounted prices.
Participation and Subscription Process
To participate, shareholders must hold their shares in a brokerage account by a specified time. This record date is crucial for determining eligibility for the offering. The rights must be exercised promptly during the subscription period, after which shareholders will benefit from additional shares and rights.
Benefits of the Rights Offering
One of the key advantages of this rights offering is the over-subscription privilege. It allows rights holders who fully exercise their basic rights to purchase any available additional units. This is a smart way to ensure that existing shareholders have priority in acquiring further stakes in the company.
Strategic Financial Moves
Through this offering, FlexShopper aims to raise significant capital that will be allocated towards repaying a substantial portion of its debt and repurchasing Series 2 Convertible Preferred Stock. This not only stabilizes the company's financial position but also opens doors for potential strategic acquisitions.
Projected Timeline for the Offering
The proposed rights offering is set to unfold over several key dates, primarily commencing shortly after the record date. Stakeholders can look forward to the subscription period and associated deadlines, allowing for a structured approach to investment.
Importance of Advisement
FlexShopper encourages current investors to communicate with their financial advisors to ensure they are well-informed and prepared to act during the offering period. This proactive approach is crucial for maximizing participation and investment outcomes.
About FlexShopper, Inc.
FlexShopper stands as a leader in the financial technology sector, offering innovative payment solutions that cater mainly to underserved consumers. Their marketplace operates online, providing various leasing and lending options that align with the diverse needs of their customers.
Continuing Support for Shareholders
As FlexShopper moves forward with this rights offering, it underscores its commitment to shareholder engagement and financial growth. The involvement of current officers and directors in purchasing units reflects confidence in the company’s future potential.
Frequently Asked Questions
What is the purpose of FlexShopper's rights offering?
The rights offering aims to raise capital to repay debt, repurchase preferred stock, and potentially fund acquisitions.
How can shareholders participate in the rights offering?
Shareholders must own shares on the record date and can exercise their rights during the subscription period.
What benefits do shareholders gain from participating?
Participants can acquire additional shares at a discounted rate, enhancing their investment in FlexShopper.
Are there risks associated with the rights offering?
As with any investment, risks exist, including market volatility and the performance of the company post-offering.
Who can shareholders contact for more information?
Shareholders can reach out to the designated Rights Offering Information Agent, MacKenzie Partners, Inc., for inquiries and further details.
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