FlexShopper updates its rights offering, allowing shareholders to participate in Series A, B, and C rights following a $12 million raise.
Quiver AI Summary
FlexShopper, Inc., an online lease-to-own retailer, announced updates to its rights offering, allowing shareholders who participated in a recent subscription to also engage in Series A, B, and C rights offerings. The initial subscription raised approximately $12 million, including $9.4 million in gross proceeds, which were used to reduce debt under a credit agreement. FlexShopper estimates that this subscription could positively impact earnings per share for the third quarter of 2024. The Series A, B, and C rights have specific expiration dates and exercise pricing based on market conditions. FlexShopper encourages participation and provides resources for additional information regarding these rights offerings.
Potential Positives
- FlexShopper raised approximately $12 million through its initial unit subscription, providing significant capital to strengthen its financial position.
- The proceeds from the subscription were used to pay down borrowings under its credit agreement, reducing debt and improving the company's balance sheet.
- The initial unit subscription is estimated to be approximately 15% accretive to pro-forma earnings per share for the 2024 third quarter, signaling positive financial impact for shareholders.
- The upcoming Series A, B, and C rights offerings position the company to further capitalize on its financial strategies, potentially enhancing shareholder value.
Potential Negatives
- The announcement of a rights offering may indicate financial distress, as it suggests the company needs to raise additional capital to stabilize or fund its operations.
- The company's use of raised funds to pay down borrowings could highlight issues with its existing debt levels and reliance on debt financing.
- The complexity of the rights offering, including varying expiration dates and exercise prices, could lead to confusion among investors and discourage participation.
FAQ
What is FlexShopper's recent announcement about rights offerings?
FlexShopper updated its shareholders on the Series A, B, and C rights offerings following an initial unit subscription that raised approximately $12 million.
How much money did FlexShopper raise from the initial unit subscription?
The initial unit subscription raised approximately $12 million, including $9.4 million in gross proceeds and the conversion of $2.5 million in subordinated debt.
When are the expiration dates for the Series A, B, and C rights?
The expiration dates are February 15, 2025, March 17, 2025, and April 16, 2025, respectively.
Who can participate in the upcoming rights offerings?
FlexShopper shareholders who participated in the initial unit subscription are eligible to partake in the Series A, B, and C rights offerings.
How can investors find more information about the rights offerings?
Investors can find rights offering information at the SEC website, FlexShopper's investor site, or by contacting MacKenzie Partners.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FPAY Insider Trading Activity
$FPAY insiders have traded $FPAY stock on the open market 11 times in the past 6 months. Of those trades, 11 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $FPAY stock by insiders over the last 6 months:
- HOWARD DVORKIN has made 10 purchases buying 111,412 shares for an estimated $132,266 and 0 sales.
- HAROLD RUSSELL JR. HEISER (CEO) purchased 30,000 shares for an estimated $43,500
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$FPAY Hedge Fund Activity
We have seen 7 institutional investors add shares of $FPAY stock to their portfolio, and 11 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WATERFALL ASSET MANAGEMENT, LLC added 1,629,547 shares (+inf%) to their portfolio in Q3 2024, for an estimated $1,678,433
- M HOLDINGS SECURITIES, INC. removed 287,000 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $295,610
- PERKINS CAPITAL MANAGEMENT INC removed 255,014 shares (-40.9%) from their portfolio in Q3 2024, for an estimated $262,664
- BENCHMARK FINANCIAL WEALTH ADVISORS, LLC removed 189,977 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $324,860
- PERIGON WEALTH MANAGEMENT, LLC added 100,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $171,000
- UBS GROUP AG removed 45,923 shares (-30.5%) from their portfolio in Q3 2024, for an estimated $47,300
- RENAISSANCE TECHNOLOGIES LLC removed 29,878 shares (-13.5%) from their portfolio in Q3 2024, for an estimated $30,774
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
BOCA RATON, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) --
FlexShopper, Inc. (Nasdaq: FPAY)
, a prominent national online lease-to-own retailer and payment solutions provider, today announced an update to its previously disclosed rights offering. FlexShopper shareholders who participated in the unit subscription that closed on January 10, 2025, are now eligible to participate in the Series A, B, and C rights. Details of which can be found in the body of this press release.
As a result of the initial unit subscription, FlexShopper raised approximately $12 million of proceeds, consisting of $9.4 million in gross proceeds from the subscription and the conversion of $2.5 million of the Company’s subordinated debt with NRNS Capital Holdings LLC. The $9.4 million in gross proceeds was used to pay down borrowings under FlexShopper’s credit agreement with Waterfall Asset Management, LLC. As a result of these actions, FlexShopper estimates that the initial unit subscription would have been approximately 15% accretive to pro-forma earnings per share for the 2024 third quarter.
“The outcome of the initial unit subscription demonstrates the accretive nature of our efforts to equitize our balance sheet,” said Russ Heiser, CEO of FlexShopper. “We are approaching the Series A, B, and C rights offerings from a position of strength and I am excited to provide investors with an update on our financial performance.”
Overview of Upcoming Rights
Rights: | Expiration Dates: | Exercise Pricing of Rights: |
Series A | February 15, 2025 | Exercise price equal to the higher of: 1) $1.70 or 2) 90.0% of the VWAP of our common stock over the last three trading days prior to the expiration date of the Series A Rights, but in any event not to exceed $2.55. |
Series B | March 17, 2025 | Exercise price equal to the higher of: 1) $1.70 or 2) 87.5% of the VWAP of our common stock over the last three trading days prior to the expiration date of the Series A Rights, but in any event not to exceed $3.40. |
Series C | April 16, 2025 | Exercise price equal to the higher of: 1) $1.70 or 2) 85.0% of the VWAP of our common stock over the last three trading days prior to the expiration date of the Series A Rights, but in any event not to exceed $4.25. |
It is important to note that many broker-dealers ask for rights subscription submissions prior to the expiration dates of the respective rights. As a result, FlexShopper encourages rightsholders to submit their submissions by February 13, 2025, March 14, 2025, and April 14, 2025.
FlexShopper encourages holders of the Series A, B, and C Rights to contact their broker or financial advisor’s Corporate Actions Department to participate in these subsequent rights. Rights offering information can be found at
https://www.sec.gov
and
https://investors.flexshopper.com
, or by calling the rights offer information agent, MacKenzie Partners at 800-322-2885.
Moody Capital Solutions, Inc. (Moody Capital) is acting as dealer-manager for the rights offering and can be contacted at
info@moodycapital.com
.
The offering was made pursuant to the Corporation’s registration statement on Form S-1 (File No. 333-282857), which was declared effective by the U.S. Securities and Exchange Commission on November 29, 2024. The prospectus relating to and describing the terms of the rights offering has been filed with the SEC on December 2, 2024, and is available on the SEC’s website at
www.sec.gov
.
This announcement shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
About FlexShopper, Inc.:
FlexShopper, Inc. (Nasdaq: FPAY) is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at flexshopper.com and in partnership with partner merchants both online as well as at brick and mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via lease-to-own and lending products.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations of lease originations, the expansion of our lease-to-own program; expectations concerning our partnerships with retail partners; investments in, and the success of, our underwriting technology and risk analytics platform; our ability to collect payments due from customers; expected future operating results and expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: our ability to obtain adequate financing to fund our business operations in the future; the failure to successfully manage and grow our
FlexShopper.com
e-commerce platform; our ability to maintain compliance with financial covenants under our credit agreement; our dependence on the success of our third-party retail partners and our continued relationships with them; our compliance with various federal, state and local laws and regulations, including those related to consumer protection; the failure to protect the integrity and security of customer and employee information; and the other risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The forward-looking statements made in this release speak only as of the date of this release, and FlexShopper assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Company Contact:
FlexShopper, Inc.
Investor Relations
ir@flexshopper.com
Investor and Media Contact
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
andrew@smberger.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
