Society Pass expands stock sale agreement

Society Pass Incorporated (NASDAQ:SOPA), a Nevada-based business services company with a market capitalization of $16.9 million, has amended its existing sales agreement with Ascendiant Capital Markets, LLC, allowing for an increased sale of common stock up to $3.37 million. The amendment, dated Wednesday, was disclosed in a recent SEC filing. According to InvestingPro analysis, while the company maintains more cash than debt on its balance sheet, it's currently burning through cash at a concerning rate.

Under the terms of the amendment, Society Pass, which operates under the organization name 07 Trade & Services, may offer and sell its common stock through Ascendiant Capital Markets from time to time. The amendment, referred to as Amendment No. 2, follows a previous adjustment made on May 25, 2024, to the Sales Agreement initially entered into on August 21, 2023.

This move permits Society Pass to potentially bolster its capital through the sale of shares at a total aggregate offering price not exceeding the newly established limit. The common stock is listed on The Nasdaq Stock Market LLC under the trading symbol SOPA.

The SEC filing, dated February 14, 2025, includes the full text of the amendment to the sales agreement. The Chief Executive Officer of Society Pass, Raynauld Liang, has signed off on the filing, affirming the company's commitment to the updated terms with Ascendiant Capital Markets.

Investors and market watchers may view this development as a strategic effort by Society Pass to access additional capital to support its business operations. The stock has shown significant volatility, with a remarkable YTD return of 423% despite revenue declining by 24% in the last twelve months. InvestingPro subscribers have access to 16 additional key insights about SOPA's financial health and market position, including detailed analysis of its growth prospects and valuation metrics. The sales agreement and its amendments are standard mechanisms for publicly traded companies to manage their financing and capital structure.

The information for this article was obtained from a press release statement filed with the Securities and Exchange Commission.

In other recent news, Society Pass Incorporated is facing potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum bid price requirement. The Nevada-based company received notification that its common stock had fallen below the necessary $1.00 per share threshold for 30 consecutive business days. Society Pass has been given 180 days, until June 4, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for ten consecutive business days.

To address this deficiency, the company is evaluating various options, including a possible reverse stock split to elevate the per-share trading price. Should Society Pass fail to comply by the June deadline, it could qualify for an additional 180-day compliance period, contingent on meeting all other initial listing standards. The company's management, however, has expressed uncertainty about their eligibility for this additional period or Nasdaq's approval for continued listing following a potential delisting notification. These recent developments are based on a press release statement and are subject to various factors, including Nasdaq's continued listing standards.

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