NextNRG enters $3 million loan agreements with share pledges to investors

Published 30/06/2025, 13:48
NextNRG enters $3 million loan agreements with share pledges to investors

NextNRG, Inc. (NASDAQ:NXXT), a company with a market capitalization of $336 million and revenue growth of 52% over the last twelve months, announced Monday that it has entered into loan agreements totaling $3 million with two accredited investors. The information was disclosed in a press release statement and detailed in a filing with the Securities and Exchange Commission. According to InvestingPro data, the company operates with moderate debt levels but faces challenges with short-term obligations exceeding liquid assets.

According to the filing, on Friday, NextNRG received $1.5 million from each lender. As part of the agreements, the company agreed to pay the full interest due on the loans—totaling $1.35 million—by issuing 450,000 shares of common stock at $3.00 per share to the lenders. The share issuance price represents a premium to the current trading price of $2.77. Get deeper insights into NextNRG’s financial health and valuation with a comprehensive Pro Research Report, available exclusively on InvestingPro.

To secure the loans, NextNRG pledged a total of 5,800,000 shares of its common stock. In the event of a default on any of the loans, the defaulting lender would receive 2,900,000 pledged shares. The lender would then sell enough shares to cover the outstanding loan amount and return any unsold shares to the company at no cost.

The sale and issuance of these shares will be made under NextNRG’s existing shelf registration statement on Form S-3, which was declared effective on January 3, 2023. The company filed a prospectus supplement related to this transaction on Monday.

The agreements also include pledge and security arrangements, as well as escrow agreements involving the company’s transfer agent as escrow agent.

This report is based on information provided in a press release statement and the company’s SEC filing.

In other recent news, NextNRG Inc. reported a significant 146% increase in revenue for the first quarter of 2025, reaching $16.3 million. This growth was primarily driven by the expansion of mobile fueling operations and strategic acquisitions, including the integration of fleet assets from Shell and Yoshi. However, the company posted a net loss of $8.9 million, reflecting ongoing investments in infrastructure and innovation. NextNRG was also added to the Russell 2000 and Russell 3000 Indexes, marking an important milestone in its growth journey. ThinkEquity initiated coverage on NextNRG with a Buy rating, citing its shift towards distributed energy infrastructure as a key factor. The company plans to begin construction on its first commercial smart microgrid in Northern Florida, with a project pipeline exceeding $750 million. Despite these advancements, NextNRG ended the quarter with a working capital deficit of $24.0 million. CEO Michael Farkas highlighted the company’s focus on pioneering energy solutions, including AI-driven smart microgrids and wireless EV charging technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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