Giftify Inc. extends loan repayment, pays $1M principal

Giftify Inc. (NASDAQ:GIFT), a retail catalog and mail-order house with a market capitalization of $24.31 million, has reached an agreement with Spars Capital Group LLC to extend the repayment of a substantial loan. On Monday, Giftify paid $1 million towards the principal and covered interest payments, with the remaining balance due by February 19, 2025.

The original secured promissory note, signed on September 20, 2024, was for $2 million with an 11.5% annual interest rate and a maturity date of January 20, 2025. The loan is secured by a blanket lien on Giftify’s assets and is subordinate only to a $6.459 million line of credit from Pathward, National Association. According to InvestingPro data, the company’s current ratio stands at 0.8, indicating potential liquidity challenges, with short-term obligations exceeding liquid assets.

Under the new terms outlined in the Allonge to Promissory Note, the company made an interest payment of $77,506.85 and agreed to pay the accrued interest of $9,583.33 by the new February deadline, bringing the total due to $1,009,583.33.

Giftify, previously known as RDE, Inc., uBid Holdings, Inc./New, and Incumaker, Inc., has undergone several name changes, with the most recent occurring on August 20, 2020. The company is based in Norcross, Georgia, and operates under a Delaware incorporation.

This financial maneuvering comes as Giftify continues to manage its debt obligations amidst its business operations. The details of the agreement were disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission.

Investors in Giftify will be monitoring the company’s financial health closely, particularly its ability to meet the new repayment deadline. The extension provides the company with additional time to manage its finances without defaulting on its obligations. InvestingPro analysis reveals the company is currently trading below its Fair Value, with additional metrics and 12 exclusive ProTips available to subscribers that could provide crucial insights into the company’s financial trajectory.

The information in this article is based on a press release statement.

In other recent news, Giftify Inc. has made some noteworthy strategic moves. The company has secured a $10 million financing deal with ClearThink Capital Partners (WA:CPAP), providing a flexible financing mechanism to support its growth initiatives. In addition, Giftify has agreed to sell approximately $5 million of its common stock in a direct offering managed by Craft Capital LLC. Despite current market conditions, the company has also initiated an at-the-market equity offering program, potentially selling up to $30 million worth of shares facilitated by Ascendiant Capital Markets, LLC.

Furthermore, Giftify has secured a $2 million agreement with Spars Capital Group, set to mature in 2025. However, the company recently canceled a registered direct offering with Craft Capital Management. On the personnel front, Giftify has appointed Balazs Wellisch as the new COO of Restaurant.com and Steve Handy as the new CFO.

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