BOCA RATON, Fla., Jan. 13, 2025 (GLOBE NEWSWIRE) — FlexShopper, Inc. (Nasdaq: NASDAQ:)a leading 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 of the Rights Offering. Units sold at $1.70 are at a 15% discount to the 3-day volume weighted average price and include one share and 3 additional rights to purchase shares at the discounted price. in trade.

Preliminary Proceedings
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 revenue. There are an additional 21 million rights that can be exercised over the next 90 days at 30-day intervals for additional shares.

I want to thank all my fellow shareholders who subscribe to our subscription rights for their continued support, trust, and above all, trust in FlexShopper, said Russ Heiser, CEO of FlexShopper. A Rights Offering is an efficient, shareholder-friendly, and accretive way to raise capital. At the end of the third quarter of 2024, our stock closed at $1.03 per share, representing a market cap of $22.1 million, compared to FlexShopper’s closing stock price on January 10, 2025 of $1.90 per share, which representing a market cap of over $54 million. We believe this appreciation reflects the accretive nature of the use of the proceeds of the Rights Offerings, as well as the growing strength of our financial and operating results.

Mr. Heiser continued: Shareholders who participate in Subscription Rights now have access to additional opportunities to increase their FlexShopper investment through future Series A, B, and C rights that expire in the next 30, 60, and 90 days, respectively. The same level of participation in the Series A, B, and C rights will raise a total of approximately $48 million, which we estimate will save approximately $8.5 million in annual dividend and interest expense.

The Company intends to use the proceeds from the Rights Offering to repurchase 90% of its Series 2 Convertible Preferred Stock, and to repay a portion of its credit facility and other outstanding debt facilities. Any remaining income will be used for general corporate purposes, including potential acquisitions of other companies. The shares subscribed to Subscription Rights are expected to be issued to participating stockholders on or about January 15, 2025.

Subordinated Debt Conversion
NRNS Capital Holdings LLC (NRNS), the manager of which is the Chairman of FlexShopper’s Board of Directors, has elected to convert $2.5 million of the $10.75 million principal debt outstanding on September 30, 2024 into a Rights Offering. . On September 30, 2024, amounts outstanding under the NRNS Note bear interest at a rate of 19.21%. With the partial conversion of the NRNS subordinated debt the pro forma outstanding balance is $8.25 million. FlexShopper estimates it will save approximately $0.5 million in annual interest costs as a result of the conversion.

Mr. concluded. Heiser, I’m excited about the direction FlexShopper is headed, as we grow our market share and execute against our growth-focused strategic plan. Equitizing our balance sheet is a powerful opportunity to expand earnings for our equity shareholders. I look forward to providing more updates on our success in the coming months.

FlexShopper encourages holders of Series A, B, and C Rights to contact the Corporate Actions Department of their broker or financial advisor to participate in these subsequent rights. Information on the rights offering can be found at https://www.sec.gov and https://investors.flexshopper.com.

The offering is made pursuant to the Corporation’s registration statement on Form S-1 (File No. 333-282857), which has been declared effective by the US Securities and Exchange Commission on November 29, 2024. The prospectus related to and describes the terms The rights offering was 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 may be made. unlawful prior to registration or qualification under the securities laws of any 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 financing options for underserved consumers through its online direct-to-consumer marketplace at flexshopper.com and in partnership with merchant partners online and in locations in brick and mortar. FlexShopper solutions are designed to meet the needs of a wide range of consumer segments through lease-to-own and loan 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, often identified by the use of forward-looking terms such as belief, expect, can, will, should, can, seek, intend, plan, aim, estimate, anticipate, or other similar terms. Examples of forward-looking statements include, among others, statements we make regarding the expectations of lease sources, the expansion of our lease-to-own program; expectations regarding our relationships 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 regarding our business strategy. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, and among others, the following: our ability to obtain sufficient financing to finance our business. future operations; the failure to successfully manage and grow our FlexShopper.com e-commerce platform; our ability to continue to meet the financial covenants under our credit agreement; our reliance on the success of our third-party retail partners and our ongoing 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 other risks and uncertainties described in the Risk Factors and 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 undertakes no obligation to update any such forward-looking statements to reflect actual results or changes. or expectations, unless required by law.

Company Contact:
FlexShopper, Inc.
Investor Relations
[email protected]

Investor and Media Contact
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
[email protected]

Source: FlexShopper, Inc.