FlexShopper sets terms for rights offering series

BOCA RATON, Fla. - FlexShopper, Inc. (NASDAQ:FPAY), a key player in the online lease-to-own retail and payment solutions market with a market capitalization of $30.26 million, has announced the terms for its upcoming Series A, B, and C rights offerings. According to InvestingPro data, the company has demonstrated strong revenue growth of 24.46% over the last twelve months, despite facing profitability challenges. This follows the company’s successful unit subscription that concluded on January 10, 2025, which raised approximately $12 million. The proceeds from the subscription, along with the conversion of $2.5 million of subordinated debt, were used to reduce liabilities under the company’s credit agreement with Waterfall Asset Management, LLC.

The rights offerings are scheduled with the following terms: Series A rights will expire on February 15, 2025, with an exercise price based on the higher of $1.70 or 90% of the average closing price of FlexShopper’s common stock over the last three trading days before the expiration, capped at $2.55. Series B rights will expire on March 17, 2025, with similar terms, but the cap is set at $3.40. Series C rights will expire on April 16, 2025, with the cap at $4.25.

FlexShopper’s CEO, Russ Heiser, expressed confidence in the accretive nature of the offerings to the company’s financial stability and the anticipated positive impact on earnings per share. Shareholders are encouraged to submit their rights subscriptions ahead of the expiration dates, with suggested deadlines being February 13 for Series A, March 14 for Series B, and April 14 for Series C.

The offerings, made under the company’s registration statement with the SEC, aim to strengthen FlexShopper’s balance sheet and financial performance. While the company maintains a healthy current ratio of 7.98, InvestingPro analysis indicates the company is currently burning through cash rapidly. Potential participants can find offering details on the SEC’s website or through the rights offer information agent, MacKenzie Partners. For deeper insights into FlexShopper’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

FlexShopper, Inc. operates a comprehensive online marketplace and partners with various merchants to offer flexible financing solutions, particularly to consumers who may be underserved by traditional financing options. With EBITDA of $25.7 million in the last twelve months, the company’s forward-looking statements indicate a focus on expanding its lease-to-own program and enhancing its underwriting technology and risk analytics platform. Analyst price targets range from $2.50 to $4.00, suggesting potential upside from current levels, though InvestingPro identifies several additional risk factors and growth opportunities in their detailed analysis.

This news is based on a press release statement and reflects the company’s current expectations and projections about future events. It is important to note that forward-looking statements are subject to risks, uncertainties, and changes in circumstances that could significantly affect the company’s future results and business.

In other recent news, FlexShopper has seen significant developments in its financial performance and strategic growth. The company reported a 23% increase in total revenue in the third quarter, reaching $39 million, and a 45% rise in adjusted EBITDA, totaling over $12 million. H.C. Wainwright has maintained a Buy rating on FlexShopper, recognizing these robust financial results.

FlexShopper also announced board changes, with the resignation of Sean Hinze and the appointment of Denis Echtchenko and former North Carolina governor Patrick McCrory. These changes are expected to provide strategic guidance as the company continues to implement growth strategies.

Furthermore, FlexShopper has adjusted the employment agreement with CEO H. Russell Heiser Jr., which includes a salary increase and an adjustment to his target bonus. The company is also planning to significantly expand its business-to-business offering in 2025 and has launched a rights offering aimed at raising capital and reducing debt. These are the recent developments that highlight FlexShopper’s strategic growth initiatives and robust financial performance.

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