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BARTLETT, Tenn. - SurgePays, Inc. (NASDAQ:SURG), a $60 million market cap fintech company whose stock has surged over 73% in the past six months, has introduced a new line of prepaid smartphones specifically designed for convenience stores and non-wireless retail channels, the company announced Thursday. According to InvestingPro analysis, the company appears slightly overvalued at current levels.
The "phone-in-a-box" products, offered under SurgePays’ LinkUp Mobile brand on the AT&T network, come preloaded with SIM cards and include the first month of service featuring 12 gigabytes of data and unlimited voice and text within the United States, Canada and Mexico.
The company offers two models: "The Better Phone" with a 6.3-inch HD screen, 32GB storage and 2GB RAM, and "The Best Phone" with a 6.5-inch HD screen, 32GB storage and 3GB RAM expandable by another 3GB. Both devices include removable batteries and front/rear cameras.
Consumers can activate the phones through a six-question process without credit checks or contracts. The standard service cost is $30 monthly after the included first month, with options to change service levels beginning in the second month.
"Retailers in this grab-and-go environment have been asking us for a way to tap into the wireless market more aggressively but without creating chaos at the cash register," said Derron Winfrey, president of sales operations at SurgePays, in the press release statement.
SurgePays positions the product as beneficial for merchants using its point-of-sale platform, as it creates potential for repeat sales when customers return to renew their monthly service.
The company operates as both a mobile virtual network operator and enabler, providing wireless services and back-end infrastructure to other providers. While the company maintains strong liquidity with a current ratio of 1.72, InvestingPro data reveals additional insights about SurgePays’ financial health and growth prospects, available in the comprehensive Pro Research Report covering over 1,400 US stocks.
In other recent news, SurgePays, Inc. announced a $7 million financing agreement through a senior secured convertible note with an existing institutional shareholder. This note, convertible into common stock at $4.00 per share, is expected to bolster the company’s balance sheet and support its national growth strategy. The funds will be used for the national rollout of LinkUp Mobile and the expansion of the MVNE wholesale business, particularly following the integration with AT&T. SurgePays anticipates generating over $200 million in revenue in the next 12 months, starting April 1, 2025, with a goal of achieving positive operational cash flow by the end of the year. In another development, SurgePays promoted Derron Winfrey to President of Sales and Operations. Winfrey, with extensive experience in the fintech and wireless sectors, will lead the company’s sales efforts, focusing on services such as LinkUp Mobile and federal Lifeline programs. His responsibilities include managing the expansion of the sales organization and improving customer experience. The company believes his leadership will enhance execution and scale, ultimately increasing shareholder value.
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