SurgePays Announces Closing on $25 Million Senior Credit Facility
November 18 2022 - 8:00AM
SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a
technology and telecommunications company focused on the
underbanked and underserved, announced it has closed on a $25
million senior secured credit facility from Affordable Connectivity
Financing V LLC (“ACF V”) – a wholly-owned subsidiary of Horizon
Capital LLC and affiliate of ACP Finance. Approximately $15 million
of financing was provided at closing.
The credit facility, an Installment Sale Agreement with ACF V,
is a structured credit, non-dilutive structure without warrants,
convertibility or stock issued as part of the transaction. An
Installment Sale Agreement is a unique short-term liability that
provides for repayment over the subscriber life in a fashion that
should allow SurgePays to grow its subscriber base in a cash flow
positive manner.
Brian Cox, CEO of SurgePays, stated, "Our team has worked many
hours for months to accomplish this access to millions in growth
capital without incurring term debt or selling stock. If you
consider we have throttled sales awaiting this funding and still
ramped our revenue up 2.5X to over $36 million in Q3, it’s
extremely exciting to think of what our team can do fully locked
and loaded. The guys at ACP Finance are a great partner for us as
they allow us to lower our device costs and increase sales within a
non-dilutive investment structure with no term debt or stock
related component. The impact to our cash flow, revenue and balance
sheet should be significant. This facility structure is perfectly
suited for our hyper growth model because it offers us increased
credit capacity as we continue to add subscribers."
Bill Pettinati, Manager of ACF V, stated, "We are pleased to add
SurgePays to our portfolio of ACP and Lifeline companies that
provide essential broadband and communication services to the
underserved. We look forward to a long partnership with Brian and
his team in building SurgePays."
Kelley Drye & Warren LLP represented Affordable Connectivity
Financing V LLC and Lucosky Brookman LLP represented SurgePays in
the transaction.
About SurgePays, Inc.
SurgePays, Inc. is a technology and telecommunications company
focused on the underbanked and underserved communities. SurgePhone
Wireless provides mobile broadband to low-income consumers
nationwide. SurgePays blockchain fintech platform utilizes a suite
of financial and prepaid products to convert corner stores and
bodegas into tech hubs for underbanked neighborhoods. Please visit
SurgePays.com for more information.
About ACP Finance
ACP Finance provides growth capital to companies based on
forecasted customer value. The company funds eligible telecom
companies participating in the Affordable Connectivity Program and
Lifeline Sector. Please visit acpfinance.net for more
information.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes express or implied
statements that are not historical facts and are considered
forward-looking within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act. Forward-looking
statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance and may contain
projections of our future results of operations or of our financial
information or state other forward-looking information. In some
cases, you can identify forward-looking statements by the following
words: “may,” “will,” “could,” “would,” “should,” “expect,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“project,” “potential,” “continue,” “ongoing,” or the negative of
these terms or other comparable terminology, although not all
forward-looking statements contain these words.
Although we believe that the expectations reflected in these
forward-looking statements are reasonable, these statements relate
to future events or our future operational or financial performance
and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Furthermore, actual results may differ
materially from those described in the forward-looking statements
and will be affected by a variety of risks and factors that are
beyond our control, including, without limitation, statements about
our future financial performance, including our revenue, cash
flows, costs of revenue and operating expenses; our anticipated
growth; our predictions about our industry; the impact of the
COVID-19 pandemic on our business and our ability to attract,
retain and cross-sell to clients. The forward-looking statements
contained in this release are also subject to other risks and
uncertainties, including those more fully described in our filings
with the Securities and Exchange Commission (“SEC”), including in
our Annual Report on Form 10-K for the fiscal year ended December
31, 2021. The forward-looking statements in this press release
speak only as of the date on which the statements are made. We
undertake no obligation to update, and expressly disclaim the
obligation to update, any forward-looking statements made in this
press release to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events, except as required by law.
Investor RelationsBrian M.
Prenoveau, CFAMZ Group – MZ North AmericaSURG@mzgroup.us561 489
5315
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