FlexShopper Announces Preliminary Results of Unit Subscription Rights Offering

Core Viewpoint - FlexShopper, Inc. has successfully completed a unit rights offering, raising approximately $9.4 million in gross proceeds, with plans to utilize the funds for debt repayment and potential acquisitions [1][2][3]. Group 1: Rights Offering Details - The Rights Offering expired on January 10, 2025, with approximately 5,547,993 subscription rights exercised, representing about 21% of the company's common stock [2]. - Units were sold at $1.70, reflecting a 15% discount to the 3-day volume weighted average price [1]. - An additional 21 million rights can be exercised over the next 90 days at 30-day intervals for more shares [2]. Group 2: Financial Impact and Future Plans - The company intends to use proceeds to repurchase over 90% of its Series 2 Convertible Preferred Stock and repay portions of its credit facility and other debts [3]. - The CEO highlighted that the Rights Offering is expected to save approximately $8.5 million in annual dividend and interest expenses if similar participation occurs in upcoming rights offerings [3]. - The conversion of $2.5 million of subordinated debt is anticipated to save approximately $0.5 million in annual interest expenses [4]. Group 3: Market Performance - The company's stock price increased from $1.03 per share at the end of Q3 2024 to $1.90 per share by January 10, 2025, indicating a market capitalization growth from $22.1 million to over $54 million [3]. - The CEO expressed optimism about the company's growth strategy and market share expansion [5]. Group 4: Company Overview - FlexShopper, Inc. is a national financial technology company providing lease-to-own and lending products to underserved consumers through its online marketplace and partnerships with merchants [7].