FlexShopper Shares Positive Outlook Amid Rights Offering Updates
FlexShopper Shares Positive Outlook Amid Rights Offering Updates
FlexShopper, Inc. (Nasdaq: FPAY), a well-established online lease-to-own retailer, recently announced important updates regarding its rights offering. Investors who participated in the previous unit subscription that concluded in early January now have the opportunity to engage in Series A, B, and C rights offerings, enhancing their investment portfolio significantly.
Financial Gains from the Initial Unit Subscription
The recent unit subscription was notably successful, raising approximately $12 million in proceeds. This impressive amount includes $9.4 million generated directly from subscriptions alongside the conversion of $2.5 million in subordinated debt from NRNS Capital Holdings LLC. The success of this fundraising initiative allows FlexShopper to reduce its borrowings under its credit agreement with Waterfall Asset Management, LLC, resulting in a more robust financial standing. The company anticipates that this initial funding will enhance its pro-forma earnings per share by around 15% for the upcoming quarter.
CEO's Insights on Financial Strength
Expressing optimism about the company's financial trajectory, CEO Russ Heiser noted, "The outcome of the initial unit subscription demonstrates the accretive nature of our efforts to equitize our balance sheet. We are approaching the Series A, B, and C rights offerings from a position of strength and are excited to share our financial performance updates with our investors." This assurance reflects the company’s commitment to transparency and engagement with its shareholders.
Details on Upcoming Rights Offerings
FlexShopper's upcoming rights offerings present an exciting opportunity for shareholders to further invest in the company. Here are the key details regarding the Series A, B, and C rights:
- Series A: Expires on February 15, 2025, with an exercise price based on the higher of $1.70 or 90% of the VWAP of common stock, capped at $2.55.
- Series B: Expires on March 17, 2025, with an exercise price determined similarly, but not exceeding $3.40.
- Series C: Expires on April 16, 2025, also following the same pricing mechanism, not to exceed $4.25.
Submission Recommendations for Shareholders
As many broker-dealers may require subscription submissions ahead of the expiration dates, FlexShopper advises holders of the Series A, B, and C rights to ensure their submissions are completed by the following dates: February 13, March 14, and April 14, respectively. By doing so, investors can position themselves advantageously as they navigate through these offerings.
How to Participate in the Rights Offerings
Shareholders interested in participating in the Series A, B, and C Rights offerings are encouraged to connect with their brokers or the Corporate Actions Department of their financial advisors for guidance. Detailed rights offering information is available through the company’s investor relations channels, and they can also contact the rights offer information agent, MacKenzie Partners, by calling 800-322-2885.
Dealer-Manager for the Offerings
Moody Capital Solutions, Inc. serves as the dealer-manager for these rights offerings. They can be contacted for assistance through their dedicated email, ensuring that all investor queries are duly addressed.
About FlexShopper, Inc.
FlexShopper, Inc. (Nasdaq: FPAY) excels as a national financial technology leader, providing diverse payment solutions tailored for underserved consumers. With an innovative online marketplace, FlexShopper connects consumers with flexible funding alternatives through both online and in-store partnerships. The company’s offerings, which include lease-to-own and lending products, cater to a broad spectrum of consumer needs.
Frequently Asked Questions
What is the purpose of FlexShopper's rights offering?
The rights offering allows existing shareholders to invest further and support FlexShopper's financial growth and stability.
When do the rights offerings expire?
Series A expires on February 15, Series B on March 17, and Series C on April 16, 2025.
How can participants submit their rights subscription?
Shareholders are advised to submit their rights subscription to their brokers before the expiration dates to ensure participation.
What are the terms of the exercise pricing?
The exercise price for each series is determined based on either a fixed price or a percentage of the VWAP of the common stock, subject to caps.
Who can I contact for more information about the offerings?
Investors can reach out to MacKenzie Partners, the rights offer information agent, or Moody Capital Solutions, the dealer-manager, for more details.
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