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SAN DIEGO - RYVYL Inc. (NASDAQ:RVYL), a company specializing in electronic payment technology, has converted its remaining 8% Senior Convertible Note into common stock, a move that finalizes its strategy to improve its financial structure. The conversion of the outstanding principal balance of $4.0 million and accrued interest of $136,000 resulted in the issuance of 7.1 million shares of common stock, announced the company today. According to InvestingPro data, RYVYL’s stock has shown significant volatility, with a 55% return over the last week, though the company’s current market capitalization stands at just $7.52 million.
This financial maneuver is part of RYVYL’s broader strategy to minimize shareholder dilution and restructure its balance sheet. Earlier in the year, on January 2025, the company had redeemed its Series B Convertible Preferred Stock, valued at $53.1 million, and $14.3 million of the Senior Convertible Note for a $13.0 million payment. This action prevented over 90 million shares from potential dilution and shifted more than $50 million of additional paid-in capital from Preferred Stock to Common shareholders, according to George Oliva, CFO of RYVYL. InvestingPro analysis reveals concerning metrics, including a weak financial health score of 1.57 and a current ratio of 0.77, indicating potential liquidity challenges.
RYVYL, formerly known as GreenBox POS, was established in 2017 and has since focused on creating business-to-business, consumer-to-business, and peer-to-peer payment solutions. The company prides itself on offering financial products that ensure enhanced security, data privacy, and protection against identity theft, while also providing rapid settlement speeds. These services cater to a variety of clients, including first-tier partners, merchants, and consumers globally. Despite its innovative offerings, InvestingPro data shows the company faces operational challenges, with revenue declining by 23.82% and an EBITDA of -$6.34 million in the last twelve months.
The company’s recent financial decisions underscore its commitment to maintaining a strong balance sheet and shareholder value. However, it is important to note that forward-looking statements included in the company’s press release are not guarantees of future performance. They are subject to risks and uncertainties that could cause actual results to differ materially from those projected. For deeper insights into RYVYL’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
The information in this article is based on a press release statement from RYVYL Inc.
In other recent news, RYVYL Inc. has been actively involved in negotiations regarding the sale of its European subsidiary, RYVYL EU, for $15 million. The company had the option to terminate the stock purchase agreement by April 23, 2025, but did not exercise this right. As a result, the purchaser is not obligated to refrain from closing the sale, though they have voluntarily agreed to delay finalizing the purchase until May 16, 2025, for ongoing discussions. Additionally, RYVYL Inc. has entered a standstill agreement that allows for potential restructuring of the asset sale, which may be extended until May 27, 2025, with an additional payment.
In a separate development, RYVYL Inc. is experiencing significant growth in client onboarding through its European arm. The company has secured contracts with two digital banking platforms, resulting in over 10,000 new accounts and more than €10 million in transactions processed. One partnership is projected to onboard 900,000 new customer accounts over the next year. These developments reflect the company’s strategic efforts to enhance its market presence and operational capabilities.
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