RYVYL Secures Agreement to Retire Debt and Preferred Stock
RYVYL Announces Major Financial Move
RYVYL Inc. (NASDAQ: RVYL), a renowned leader in electronic payment solutions, has successfully executed a significant Preferred Stock Repurchase and Note Repayment Agreement. This groundbreaking agreement will facilitate the full repayment and termination of an 8% Senior Convertible Note and the redemption of all Series B Convertible Preferred Stock. This strategic move is expected to enhance RYVYL's financial stability and streamline its capital structure.
Details of the Agreement
The executed Definitive Agreement outlines several key financial steps:
First Tranche Payment
The agreement initiates a first tranche payment of $13.0 million to redeem all shares of the Preferred Stock held by the Securityholder. Additionally, part of this payment will go towards reducing the outstanding balance of the Note, allowing a remaining principal balance of $4.0 million.
Extension of Payment Terms
Importantly, RYVYL has the option to extend the due date for this first tranche payment to February 3, 2025, by making an additional payment of $50,000. The first tranche payment needs to be completed on or before January 27, 2025, unless this extension is executed.
Ongoing Obligations and Benefits
Upon meeting the payment conditions, RYVYL will benefit from waived restrictive covenants tied to the original transaction documents surrounding the Note and shares of Preferred Stock. If RYVYL adheres to the repayment schedule for the remaining balance of the Note—due by April 30, 2025—there will be no further interest accrued. However, failure to meet this obligation will revert the terms of the Note to their original state, including the accrual of interest.
Retaining Conversion Rights
Before the completion of the first tranche payment, the Securityholder retains the right to convert the Note and the Preferred Stock into common stock, adhering to predetermined market conditions. This provision ensures a level of flexibility and potential liquidity for the Securityholder amidst the transaction.
About RYVYL Inc.
RYVYL Inc. was established with the vision of innovating the way businesses and individuals conduct transactions globally. The company is recognized for its cutting-edge payment solutions that serve a variety of markets. In its journey since inception as GreenBox POS in 2017, RYVYL has developed a suite of turnkey financial products that encompass security and data privacy, as well as rapid transaction settlements. These innovations enable efficient logging of transactional records, providing robust support to partners and clients in a fast-paced digital economy.
Frequently Asked Questions
What is the significance of the Preferred Stock Repurchase and Note Repayment Agreement?
This agreement allows RYVYL to eliminate debt and preferred stock, improving financial health and shareholder value.
What are the financial implications of the first tranche payment?
The first tranche payment reduces the principal balance of the convertible note and redeems all outstanding preferred shares, leading to a leaner capital structure.
How does the agreement affect RYVYL’s obligations?
If RYVYL meets the payment timeline, it benefits from waived restrictive covenants and no accruing interest on the remaining balance.
What happens if RYVYL fails to fulfill its repayment obligations?
Failure to pay on time will revert the Note to its original terms, leading to the accrual of interest and potential financial penalties.
How does RYVYL's solution stand out in the payment processing industry?
RYVYL is known for leveraging advanced technologies for secure and fast transactions, offering extensive protection against identity theft and data breaches.
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