FlexShopper to redeem 91% of Preferred Stock at 50% discount, increasing common equity value.

From GlobeNewswire: 2024-10-28 08:00:00

FlexShopper, Inc. has announced a purchase option agreement to redeem 91% of its Preferred Stock at a 50+% discount, transferring $23 million in equity value to common shareholders. This redemption is expected to save approximately $4 million in annual PIK dividends, enhancing net income. The deal will increase common equity value by approximately $1 per share. The redemption will lead to a highly accretive effect on earnings and contribute around $4 million to annual operating income. The agreement allows FlexShopper to repurchase the stock at approximately $20 million, a significant discount from the current liquidation preference of $43 million.



Read more at GlobeNewswire: FlexShopper Announces a Purchase Option for 91% of its