RYVYL Signs MOU with Investor to Retire 8% Senior Convertible Note and Series B Convertible Preferred Stock

Core Viewpoint - RYVYL Inc. has signed a non-binding Memorandum of Understanding (MOU) with an investor for the repayment of an 8% Senior Convertible Note and the redemption of Series B Convertible Preferred Stock, with total consideration of $16.5 million [1][2]. Group 1: Financial Details - The outstanding principal of the Note as of October 31, 2024, was $19.0 million, and the liquidation value of the Preferred Stock was $53.5 million [1]. - Under the MOU, RYVYL will pay $12.8 million in a first tranche by November 22, 2024, for the redemption of Preferred Stock and part of the Note, leaving a remaining principal balance of $3.7 million [2]. - The maturity date of the remaining Note balance will be advanced to January 31, 2025 [2]. Group 2: Conditions and Requirements - RYVYL must execute Definitive Agreements with the Investor and make the first tranche payment by the specified date, or the MOU will be terminated [3]. - The company plans to fund the first tranche payment through equity, debt, or convertible debt financing, requiring the Investor's consent unless certain conditions are met [4]. - If RYVYL fails to raise sufficient funds for the first tranche payment by the deadline, the transactions under the MOU will not be completed [5]. Group 3: Company Background - RYVYL Inc. is an innovator in payment transaction solutions, utilizing proprietary blockchain and electronic payment technology for various international markets [8]. - The company aims to enhance security, data privacy, and speed in financial transactions, having developed a suite of financial products since its founding in 2017 [8].