RYVYL Advances Financial Strategy with New MOU and Notes

RYVYL's New Memorandum of Understanding: A Strategic Move

RYVYL Inc. (NASDAQ: RVYL) is taking significant steps to enhance its financial health and operational strategy. The company recently announced a new non-binding Memorandum of Understanding (MOU) with one of its securityholders to retire an 8% Senior Convertible Note alongside the redemption of all shares of its Series B Convertible Preferred Stock.

Details of the New MOU

The New MOU truly marks a pivotal moment for RYVYL as it replaces a previous agreement that had a validity lapse on November 29, 2024. This updated agreement is structured for a complete repayment and the termination of outstanding financial instruments, showcasing RYVYL's commitment to enhancing its fiscal positioning.

Financial Terms and Agreements

Under this new arrangement, RYVYL will initiate a first tranche payment of $13 million directed towards the redemption of all Preferred Stock held by the securityholder. Furthermore, this payment will contribute to settling part of the outstanding balance on the Note, ensuring that only $4 million remains as a principal balance going forward. The maturity date of this remaining balance is set to be advanced to April 30, stretching the company’s strategic repayment timeline.

Conditions and Future Obligations

It is crucial for RYVYL to formalize definitive agreements with the securityholder and ensure the initial payment is made by January 27 to keep the arrangements intact. Should RYVYL require additional time, they can extend this date to February 3, but at an added cost of $50,000. Upon completion of these agreements, existing restrictive covenants related to the Note and the Preferred Stock will be waived, provided the remaining balance is paid by the established deadline.

The Importance of the Convertible Note and Preferred Stock Redemptions

The redemption of these financial instruments offers RYVYL the chance to free itself from restrictive covenants, enabling more flexibility in its operations and financial management. In essence, should there be a failure to meet the agreed repayment conditions, those covenants would be reinstated, which could impact the company’s operational dynamics significantly.

Implications for Shareholders

While the company prepares for these developments, the securityholder retains the option to convert their shares of Note and Preferred Stock into common stock prior to the first tranche payment. This maintains an air of potential liquidity and flexibility within the investment structure, catering to any pressing market dynamics.

About RYVYL and Its Innovations

Since its inception in 2017, RYVYL Inc. has emerged as a leader in financial transaction solutions driven by proprietary blockchain technology and electronic payment systems. Its mission is to revolutionize how businesses conduct payments across various platforms, embracing a customer-centric approach.

A Leader in Financial Technology

RYVYL focuses on building secure and efficient payment applications, ensuring protection and rapid processing for business-to-business, consumer-to-business, and peer-to-peer transactions. The company’s platform not only enhances transaction security but also offers advanced data privacy, making it an appealing choice for many global partners.

Looking Ahead

As RYVYL continues on its path of innovation and progress, these recent financial maneuvers signify its foresight in maintaining a robust and agile financial structure. The execution of the MOU is just one of the many strides the company is making toward a more secure financial future.

Frequently Asked Questions

What is the purpose of the new MOU that RYVYL has signed?

The new MOU aims to retire an 8% Senior Convertible Note and redeem the Company’s Series B Convertible Preferred Stock.

How much is the initial payment under the new MOU?

The initial payment is set at $13 million, directed towards the redemption of Preferred Stock.

When does RYVYL need to finalize agreements related to the MOU?

RYVYL must execute definitive agreements and make the first tranche payment by January 27.

Can the payment deadline be extended?

Yes, the deadline for payment can be extended to February 3 for an additional fee of $50,000.

What happens if RYVYL fails to meet the repayment deadline?

If RYVYL does not repay by the deadline, the restrictive covenants will be reinstated, limiting operational flexibility.

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