Important Subscription Process Updates for FlexShopper Investors

Key Dates for FlexShopper's Rights Offering

FlexShopper, Inc. (NASDAQ: FPAY) is reaching out to all right holders concerning an important rights offering. As the leading financial technology company looks to strengthen its balance sheet, it has identified crucial deadlines for those wishing to subscribe or over-subscribe to its offering of units.

Understanding the Rights Offering

For those considering their options, it is vital to know that many broker-dealers require subscription and over-subscription submissions no later than the designated cutoff date. Although the main rights offering is expected to conclude soon, there is an opportunity for participants to act quickly to secure their subscriptions.

Participation Requirements

FlexShopper has structured the rights offering to allow stockholders recorded as of a specific cut-off date to potentially acquire as much as 35 million units. This offering is accompanied by an over-subscription privilege, which allows stockholders the chance to purchase any remaining unsubscribed units, effectively offering them more than their initial allocation.

Potential Benefits

For those who fully exercise their basic subscription rights, the additional units available for over-subscription present a compelling opportunity. However, participants are reminded that these rights will expire if not exercised by the above-mentioned deadlines, thereby rendering them void and without value.

Capital Goals and Utilization

The primary aim of this rights offering is to secure funding necessary for several strategic initiatives. FlexShopper plans to utilize proceeds from the offering to repurchase a significant percentage of its Series 2 Convertible Preferred Stock, repay parts of its credit facility, and address other outstanding debts that contribute to the company's financial health.

Management Participation

Notably, the commitment from the Corporation's officers and directors to invest at least $5 million into this funding underscores their confidence in the company’s future. Such involvement from key stakeholders often reflects a positive outlook on the company's strategies and performance.

The Subscription Process Explained

For right holders wishing to subscribe, it is crucial to verify how their shares are held. If shares are held directly, necessary documents and payments should be sent via mail to the Subscription Agent. Details for submission will be provided in the prospectus sent to holders of record, ensuring transparency in the process.

Communication with Financial Advisors

FlexShopper encourages all stockholders to maintain open lines of communication with their broker or financial advisor regarding their interest in this rights offering. Early engagement can help ensure that rights are exercised correctly and on time.

About FlexShopper

FlexShopper, Inc. is a pioneering force in the financial technology sector, providing innovative payment solutions tailored for consumers. They boast a robust online marketplace and partner with various merchants to extend flexible funding options aimed at underprivileged market segments. Their diverse product offerings include lease-to-own and different lending solutions designed to adapt to the unique needs of customers.

Frequently Asked Questions

What is the main purpose of the rights offering?

The rights offering aims to raise capital for repurchasing a significant portion of convertible preferred stock, repaying existing debts, and funding general corporate purposes.

Who can participate in the rights offering?

Stockholders recorded as of a specific date can participate and may have rights to purchase units, including additional units through over-subscription privileges.

What happens if I miss the deadline?

If you do not exercise your subscription rights by the given deadline, those rights will instead expire and hold no value.

How much investment are company officers committing?

Company management has indicated plans to invest at least $5 million into the rights offering, reinforcing their commitment to the company’s future.

Where can I learn more about FlexShopper's offerings?

Additional information about FlexShopper's financial technology solutions and their rights offering details is accessible through investor communications from the company and official website resources.

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