NewtekOne and Paltalk Prepare for Major Business Transition

NewtekOne and Paltalk Ready for Transition

NewtekOne, Inc. and Paltalk, Inc. are gearing up for a crucial conference call to discuss the impending closure of their significant business transaction – the acquisition of Newtek Technology Solutions, Inc. (NTS) by Paltalk. This key meeting, scheduled for January 2, 2025, will provide stakeholders with insights related to this new chapter for both companies.

Details of the Acquisition

Paltalk's drive to acquire NTS comes after receiving approval from its shareholders, making January 2, 2025, a milestone date. As NewtekOne transitions into a financial holding company, it is fulfilling a commitment to divest NTS, which is responsible for managing IT services for around 17,000 clients.

Financial Aspects of the Deal

The details of the acquisition indicate that Paltalk will provide NewtekOne with a combination of cash and stock upon closing. This transaction includes $4 million in cash and a newly created series of non-voting preferred stock totaling 4 million shares. There are provisions for an additional earn-out opportunity of up to $5 million, dependent on performance metrics over the coming years.

Post-Acquisition Plans

Following the closing, Paltalk plans to rename itself Intelligent Protection Management Corp. and change its stock ticker symbol. Notably, NewtekOne intends to retain the services of NTS's team, ensuring a seamless transition for ongoing IT support.

Conference Call Overview

The upcoming conference call will be led by Barry Sloane, CEO and Chairman of NewtekOne, alongside Jason Katz, CEO and Chairman of Paltalk. Participants can expect an in-depth discussion about what these changes mean for the companies involved and what stakeholders can anticipate moving forward.

About NewtekOne

NewtekOne, Inc. is recognized as a financial holding company that offers an extensive range of business solutions to independent entrepreneurs. With a strong presence across all 50 states, NewtekOne focuses on innovative and cost-effective strategies tailored to support its clients' growth aspirations while managing risk.

Broad Service Transformations

From banking services to technology solutions and electronic payment processing, NewtekOne provides a comprehensive suite of offerings designed to meet the varied needs of business owners. Their commitment to continuous improvement and adaptation in a rapidly changing market positions them favorably amidst growing competition.

About Paltalk

Paltalk, known for its innovative communication software solutions, has a rich history of technological development and holds numerous patents in multimedia applications. As the company evolves, Paltalk remains dedicated to pushing the boundaries of social multimedia and user engagement.

Frequently Asked Questions

What is the purpose of the conference call?

The conference call aims to discuss the acquisition of Newtek Technology Solutions, Inc. by Paltalk and the implications for both companies.

When is the closing of the acquisition scheduled?

The acquisition is set to close on January 2, 2025, pending all necessary approvals.

What are the key financial terms of the deal?

Paltalk will pay NewtekOne $4 million in cash and issue 4 million shares of non-voting preferred stock.

Will the NTS team continue to operate after the acquisition?

Yes, the entire NTS team will remain employed and work for Paltalk after the acquisition closes.

What changes can we expect from Paltalk after the acquisition?

Paltalk plans to change its name to Intelligent Protection Management Corp. and will adjust its stock symbol accordingly.

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