reAlpha Tech Corp. fulfills partial debt redemption

Published 02/05/2025, 22:50
reAlpha Tech Corp. fulfills partial debt redemption

reAlpha Tech Corp. (NASDAQ:AIRE), a real estate investment company with a market capitalization of $29.75 million, reported on May 1, 2025, that it received a redemption notice from Streeterville Capital, LLC, demanding a payment of $545,000. According to InvestingPro, the company’s overall financial health score is rated as WEAK, with 13 additional key insights available to subscribers. This action is part of the company’s ongoing financial obligations under a secured promissory note agreement with the lender, dated August 14, 2024. The company’s current ratio of 0.98 and total debt of $5.98 million, as reported by InvestingPro, indicate significant financial pressure.

Per the agreement, reAlpha Tech Corp. is required to make monthly redemption payments to the lender, starting seven months after the issuance of the note, which has an original principal balance of $5,455,000 and matures on February 14, 2026. After five cash redemption payments, a 9% redemption premium is applicable to any subsequent cash payments.

The company has complied with the latest redemption notice by paying $450,000 on May 2, 2025, and has committed to paying the remaining $95,000 on May 5, 2025. Following these payments, the outstanding balance will be reduced to $4,665,104.98.

The terms of the note were detailed in a previous filing with the Securities and Exchange Commission, incorporated by reference in the current report, and can be found in Exhibit 4.4 of the company’s Quarterly Report on Form 10-Q filed on August 14, 2024.

This financial activity is disclosed in compliance with the SEC’s Form 8-K requirements, which obligate publicly traded companies to report significant events that shareholders and the Securities and Exchange Commission should be informed about.

The information provided in this article is based on a press release statement. With negative EBITDA of -$6.29 million and annual revenue of just $0.95 million, investors seeking deeper insights into reAlpha’s financial position can access comprehensive analysis and real-time metrics through InvestingPro.

In other recent news, reAlpha Tech Corp. has completed the exercise of outstanding warrants, raising approximately $3.1 million in gross proceeds. The warrants, initially issued at $1.44 per share, were exercised at a reduced price of $0.75 per share. Additionally, reAlpha has issued new unregistered warrants for the purchase of up to 8.4 million shares, which will become exercisable upon stockholder approval. The company plans to use the proceeds for general working capital. In a separate development, reAlpha has made an advance debt payment to Streeterville Capital, LLC, reducing its outstanding balance to $5,202,328.25. The company also announced the appointment of Cristol Rippe as the new Chief Marketing Officer, bringing her extensive experience in fintech and real estate to the role. Furthermore, reAlpha has ended its At the Market Sales Agreement with A.G.P./Alliance Global Partners (NYSE:GLP) and disclosed the departure of Jorge Aldecoa, the former Chief Product Officer. These recent developments reflect reAlpha’s ongoing efforts to adjust its financial and management strategies in the real estate sector.

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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