FlexShopper Announces Preliminary Results Of Rights Offering Expired Jan 10; 5.5M Rights Exercised For 21% Of Stock, $9.4M Raised; $2.5M Subordinated Debt Converted; Units Sold At $1.70; Additional 21M Rights Available Over Next 90 Days

Author: Benzinga Newsdesk | January 13, 2025 10:24am

FlexShopper, Inc. (NASDAQ:FPAY), a prominent national online lease-to-own retailer and payment solutions provider, today announced the preliminary results of its previously disclosed unit rights offering (the "Rights Offering"), which expired at 5:00 pm ET on January 10, 2025 (the "Expiration Date"). The Company also announced that the holder of the Company's subordinated debt has elected to convert 25%, or $2.5 million of the outstanding principal balance in the Rights Offering. The units sold at $1.70 were at a 15% discount to the 3-day volume weighted average price and included a share and 3 additional rights to purchase shares at discounts to the trading price.

Preliminary Proceeds

According to Continental Stock Transfer & Trust Company (the "Subscription Agent"), as of the Expiration Date, approximately 5,547,993 subscription rights (the "Subscription Rights") have been exercised to purchase approximately 21% of the Company's common stock.   Through the initial portion of the Subscription Rights offering, FlexShopper raised $9.4 million in gross proceeds.   There are an additional 21 million rights that can be exercised over the next 90 days at 30-day intervals for additional shares.

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