Lendway, Inc. Announces Rights Offering and Plan to Adopt New Corporate Name

Core Viewpoint - Lendway, Inc. is initiating a strategic rights offering aimed at significantly reducing its debt and strengthening its balance sheet, with the potential to decrease overall debt by up to 70% by early summer 2026 [1][2]. Group 1: Rights Offering Details - The rights offering will allow the company to settle a seller's note for a discount exceeding 50% of the current outstanding balance, specifically for $7.3 million, which is expected to yield an $8 million gain and over $1.6 million in annual interest savings [1][3]. - An additional $6.6 million in related party notes will be settled, leading to over $600,000 in annual interest savings [3]. - The total proceeds from the rights offering are projected to be $15.5 million, which will also include funds for strategic investments aimed at reducing operating costs and improving quality [3]. Group 2: Management Commentary - The Chairman and Co-CEO expressed excitement about the future, emphasizing the unique opportunity to retire over $15 million in debt for $7.3 million, which will significantly strengthen the company's balance sheet and boost future earnings potential [2]. - Co-CEO highlighted the potential to reduce debt by as much as $21 million through the rights offering, which is seen as a strategic move to right-size the balance sheet and focus on growth [2]. Group 3: Corporate Name Change - As part of this strategic initiative, the company will change its corporate name to "Bloomia Holdings, Inc." and will begin trading on NASDAQ under the new ticker symbol "TULP" [2].