In a significant corporate move, Giftify Inc. (NASDAQ:GIFT), a $27 million market cap leader in the retail-catalog and mail-order industry, has announced the appointment of Balazs Wellisch as the new Chief Operating Officer (COO) of Restaurant.com. The announcement came following the entry into an Executive Employment Agreement on January 16, 2025. The appointment comes during a challenging period for the company, with InvestingPro data showing the stock has declined nearly 75% over the past year.
Wellisch, previously the Chief Technology Officer of Restaurant.com, steps into his new role with a three-year agreement promising an annual base salary of $240,000. The contract also stipulates a minimum annual merit salary increase of 5% and a guaranteed minimum bonus of $25,000 per year.
The agreement outlines several provisions in case of termination. If Wellisch leaves for a good reason or if Giftify terminates his employment without cause, he is to receive a severance package. This package includes six months of his current base salary or the remainder of the agreement term, whichever is less, along with any unpaid salary and bonuses. Additionally, all vested equity will remain with Wellisch, and any unvested equity will be accelerated and deemed vested. He will also continue to receive benefits for six months post-termination.
Alongside his employment agreement, Wellisch has agreed to a confidentiality and non-competition clause that restricts him from participating in any competitive activities during and for one year after his tenure with the company. The clause also prohibits the disclosure of confidential information about the company at any time.
Giftify Inc., headquartered in Schaumburg, IL, is known for being at the forefront of digital deals in the restaurant space through its subsidiary, Restaurant.com. With annual revenue of $86.4 million and a modest gross profit margin of 12.4%, the company faces operational challenges. This strategic appointment signals the company’s commitment to strengthening its leadership team and enhancing its operations. InvestingPro subscribers can access 10 additional key insights about Giftify’s financial health and market position.
Investors can refer to the full text of the employment agreement, which is included as Exhibit 10.1 in the 8-K filing, for more detailed information. This move is part of Giftify’s ongoing efforts to solidify its market position and drive growth in its service offerings. According to InvestingPro analysis, the company is currently trading below its Fair Value, with its next earnings report scheduled for March 7, 2025.
This article is based on a press release statement from Giftify Inc.
In other recent news, Giftify, Inc. has embarked on several significant financial and strategic initiatives. The company has announced a series of strategic plans aimed at expanding its CardCash platform, including enhancing synergies with Restaurant.com, growing their retail merchant network, and implementing new user acquisition strategies. Giftify has also secured a $10 million financing deal with ClearThink Capital Partners (WA:CPAP) and intends to sell approximately $5 million of its common stock in a direct offering managed by Craft Capital LLC.
In addition to these developments, Giftify has initiated an at-the-market equity offering program, potentially selling up to $30 million worth of shares facilitated by Ascendiant Capital Markets, LLC. The company has also secured a $2 million agreement with Spars Capital Group, set to mature in 2025.
On the other hand, Giftify recently cancelled a registered direct offering with Craft Capital Management due to current market conditions. In terms of leadership, Steve Handy has been appointed as the new Chief Financial Officer and Balazs Wallisch, the company’s Chief Technology Officer, has increased his ownership to 1,040,217 shares.
These recent developments highlight Giftify’s strategic efforts to boost growth and enhance its financial position in the competitive retail landscape.
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