Note Repurchase at a $35 Million Discount Relative to $105.5 Million Total Liability
Transaction Capitalizes on Strength of Balance
Sheet and Enhances Ability to Deliver on Strategic
Objectives
LOS
ANGELES, Jan. 30, 2024 /PRNewswire/ -- Dave Inc.
("Dave" or the "Company") (Nasdaq: DAVE), one of the nation's
leading neobanks, today announced the closing of its transaction
with FTX Ventures Ltd. ("FTX") to repurchase a convertible note
(the "Note") that it issued to FTX with an original principal
balance of $100 million, for a
discounted purchase price of $71
million. This purchase price represents 67 percent of the
$105.5 million outstanding balance as
of December 31, 2023. The transaction
closed on January 29, 2024.
Prior to this transaction closing, Dave had $181 million of total liquidity as of
September 30, 2023, which included
$171 million of cash, cash
equivalents, marketable securities, short-term investments and
restricted cash as well as $10
million of undrawn capacity on its credit facility.
"The closing of this transaction is an exciting step forward for
Dave and represents a unique opportunity to create value for our
shareholders. We believe we are well capitalized and remain in a
strong position to deliver on our growth and profitability
objectives in the quarters ahead," said Dave CEO and founder,
Jason Wilk.
About Dave
Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech
pioneer serving millions of everyday Americans. Dave uses
disruptive technologies to provide best-in-class banking services
at a fraction of the price of incumbents. Dave partners with Evolve
Bank & Trust, a FDIC member. For more information about the
company, visit: www.dave.com. For investor information and updates,
visit: investors.dave.com and follow @davebanking on X.
Forward-Looking Statements
This press release includes forward-looking statements, which
are subject to the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These statements may be
identified by words such as "feel," "believes," expects,"
"estimates," "projects," "intends," "should," "is to be," "remain,"
or the negative of such terms, or other comparable terminology and
include, among other things, statements relating to Dave's capital
allocation, projected capital needs and other statements about
future events. Such forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein due to many factors,
including, but not limited to: the ability of Dave to compete in
its highly competitive industry; the ability of Dave to keep pace
with the rapid technological developments in its industry and the
larger financial services industry; the ability of Dave to manage
its growth as a public company; disruptions to Dave's operations as
a result of becoming a public company; the ability of Dave to
remediate material weaknesses in Dave's internal controls over
financial reporting and maintain an effective system of internal
control over financial reporting; the ability of Dave to protect
intellectual property and trade secrets; changes in applicable laws
or regulations and extensive and evolving government regulations
that impact operations and business; the ability to attract or
maintain a qualified workforce; level of product service failures
that could lead Dave members to use competitors' services;
investigations, claims, disputes, enforcement actions, litigation
and/or other regulatory or legal proceedings; the possibility that
Dave may be adversely affected by other economic, business, and/or
competitive factors; and those factors discussed in Dave's Annual
Report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC") on March 13,
2023 and subsequent Quarterly Reports on Form 10-Q under the
heading "Risk Factors," filed with the SEC and other reports and
documents Dave files from time to time with the SEC. Any
forward-looking statements speak only as of the date on which they
are made, and Dave undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this press release.
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
DAVE@elevate-ir.com
Media Contact
Kira
Sarkisian
press@dave.com
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SOURCE Dave Inc.