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SAN DIEGO - RYVYL Inc. (NASDAQ:RVYL), a company specializing in blockchain-based payment solutions with a market capitalization of $11.5 million, has updated its debt repayment strategy by entering into a new Memorandum of Understanding (MOU) with one of its securityholders. The company's stock has shown significant momentum, gaining over 19% in the past week. InvestingPro analysis reveals 8 key investment tips for RVYL, including insights about its volatility patterns and financial outlook. This new agreement, which supersedes a previous MOU that expired on November 29, 2024, outlines a structured plan for the repayment of an 8% Senior Convertible Note and the redemption of all Series B Convertible Preferred Stock held by the securityholder. According to InvestingPro data, RYVYL's total debt stands at $21.7 million, with a debt-to-equity ratio of 3.43, highlighting the importance of this restructuring effort.
Under the terms of the new MOU, RYVYL will make a first tranche payment of $13.0 million to redeem the Preferred Stock and pay off part of the outstanding balance of the Convertible Note, reducing its principal to $4.0 million. The maturity date for this remaining balance has been advanced to April 30, 2025. The company must execute definitive agreements and make the first tranche payment by January 27, 2025, to prevent the MOU from expiring. However, the company has the option to extend the first tranche due date to February 3, 2025, by paying an additional $50,000.
Upon the payment of the first tranche and the execution of the definitive agreements, certain restrictive covenants from the original transaction documents will be waived, provided the company pays the remaining $4.0 million principal balance of the Note by the specified maturity date. If the company fails to meet this deadline, the restrictive covenants will be reinstated.
Before the first tranche payment is made, the securityholder retains the right to convert the Note and Preferred Stock into common stock, subject to certain market limitations. This move is part of RYVYL's broader strategy to manage its financial obligations and streamline its capital structure.
RYVYL, formerly known as GreenBox POS , has been a prominent player in the payment transaction sector since its inception in 2017. The company's proprietary technology integrates blockchain ledger and electronic payment systems to facilitate business and consumer transactions worldwide. With revenue of $63.5 million in the last twelve months and a growth rate of 16%, RYVYL shows potential despite current challenges. Get comprehensive insights and detailed valuation analysis in the InvestingPro Research Report, part of our coverage of over 1,400 US stocks.
This announcement is purely informational and does not constitute an offer to sell or a solicitation to buy any securities. It is based on a press release statement and is intended to provide current information on RYVYL's financial dealings.
In other recent news, RYVYL Inc. revealed key developments during its annual stockholders' meeting and third-quarter earnings call. The San Diego-based firm announced that its shareholders approved all proposals, including the election of directors, ratification of its public accounting firm, Simon & Edward, LLP, and amendments to its equity incentive plan. A significant proposal that received approval was the issuance of common stock exceeding 20% of the company’s outstanding shares, a requirement under Nasdaq Listing Rule 5635(d), suggesting potential financing or strategic activities that could impact the company's capital structure.
In terms of earnings, despite a year-over-year decrease in total revenue to $12.6 million, RYVYL reported a substantial 96% increase in international revenue and a 31% rise in total processing volumes. The company anticipates processing volumes to surpass $4 billion in 2024, with adjusted total revenue guidance between $56 million and $60 million. RYVYL also plans to restructure its balance sheet and has a memorandum of understanding to terminate senior convertible notes and redeem preferred stock for $16.5 million.
Looking ahead, RYVYL is optimistic about its future, projecting substantial revenue growth in 2025, driven by international expansion and the development of new technologies. The company expects continued momentum into 2025, especially from its international segment, and plans to provide more specific 2025 guidance by January 2025. These are just some of the recent developments at RYVYL Inc.
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