RYVYL Inc. completed a $13 million payment, reducing outstanding debt and eliminating dilution risks for shareholders.
Quiver AI Summary
RYVYL Inc. has announced that it successfully completed an initial payment of $13 million to a securityholder, which included the redemption of all shares of its Series B Convertible Preferred Stock, valued at $53.1 million, and a partial repayment of an 8% Senior Convertible Note, reducing the outstanding principal from $18.3 million to $4 million. These actions aim to alleviate conversion overhang and dilution risk for common stockholders and suspend specific requirements of the Note until the second payment of $4 million is made by April 30, 2025. RYVYL’s CFO, George Oliva, expressed that this restructuring is expected to be advantageous for stockholders and lower the company’s cost of capital as it pursues growth in 2025. The company, which has developed a suite of electronic payment solutions, aims to transform financial transactions globally.
Potential Positives
- RYVYL Inc. has successfully redeemed all shares of its Series B Convertible Preferred Stock, significantly reducing its liquidation value commitment from $53.1 million.
- The company has substantially reduced its outstanding debt by repaying $14.3 million of its 8% Senior Convertible Note, lowering the principal balance from $18.3 million to $4.0 million.
- This financial restructuring alleviates conversion overhang and dilution risk for common stockholders, creating a potentially more favorable environment for stock ownership.
- The CFO projects that this restructuring will be highly anti-dilutive and lower the company's overall cost of capital, aiding growth investments in 2025.
Potential Negatives
- The company faces a substantial financial burden, needing to pay an additional $4.0 million by April 30, 2025, or risk triggering restrictive covenants that could impact operations.
- The redemption of the Series B Convertible Preferred Stock indicates a significant reduction in the company's equity, potentially raising concerns among investors about the company's capital structure and stability.
- The company's reliance on a single securityholder for significant financing poses risks related to financial dependency and the potential for influence over corporate decisions.
FAQ
What recent financial transactions has RYVYL completed?
RYVYL has paid $13 million to redeem Series B Convertible Preferred Stock and partially repay an 8% Senior Convertible Note.
How much was the liquidation value of the Preferred Stock?
The liquidation value of the Preferred Stock was $53.1 million prior to its redemption.
What is the current outstanding principal of the Senior Convertible Note?
The outstanding principal of the Senior Convertible Note has been reduced to $4.0 million from $18.3 million.
When is the deadline for RYVYL's second tranche payment?
The second tranche payment of $4.0 million is due on or before April 30, 2025.
How does this restructuring benefit RYVYL's common stockholders?
This restructuring eliminates substantial dilution risk and is expected to be anti-dilutive, benefiting common stockholders.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RVYL Hedge Fund Activity
We have seen 5 institutional investors add shares of $RVYL stock to their portfolio, and 7 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RENAISSANCE TECHNOLOGIES LLC removed 16,742 shares (-40.4%) from their portfolio in Q3 2024, for an estimated $22,099
- XTX TOPCO LTD added 15,107 shares (+inf%) to their portfolio in Q3 2024, for an estimated $19,941
- CROSS STAFF INVESTMENTS INC removed 4,300 shares (-13.8%) from their portfolio in Q4 2024, for an estimated $5,590
- TOWER RESEARCH CAPITAL LLC (TRC) removed 3,080 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $4,065
- WOLFF WIESE MAGANA LLC removed 2,830 shares (-35.7%) from their portfolio in Q4 2024, for an estimated $3,679
- NEW WAVE WEALTH ADVISORS LLC added 2,803 shares (+inf%) to their portfolio in Q4 2024, for an estimated $3,643
- GEODE CAPITAL MANAGEMENT, LLC added 2,051 shares (+5.2%) to their portfolio in Q3 2024, for an estimated $2,707
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SAN DIEGO, CA, Jan. 28, 2025 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has paid the initial tranche of $13.0 million to a securityholder of the Company on January 27, 2025, which completed the following:
- Redeemed of all shares of the Company’s Series B Convertible Preferred Stock (“Preferred Stock”), for which the liquidation value was $53.1 million.
- Partially repaid the 8% Senior Convertible Note held by the securityholder (“Note”), reducing the outstanding principal from $18.3 million to $4.0 million, which is due on or before April 30, 2025, and also temporarily suspended (i) the Company’s requirement to pay interest on the remaining principal balance of the Note, (ii) the securityholder’s right to convert the Note and (iii) certain restrictive covenants contained in the Note, all of which would be restored if the Company does not pay the second tranche of $4.0 million by April 30, 2025.
“These transactions eliminate a large portion of the conversion overhang and substantial dilution risk to our common stock from both the Preferred Stock and Note,” said George Oliva, CFO of RYVYL. “We expect the net gain from this balance sheet restructuring to be highly anti-dilutive; thus, benefitting the common stockholders and lowering our overall cost of capital as we invest in our growth in 2025.”
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee's ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries - particularly industries with heightened cash reporting obligations and restrictions - as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company's periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.
IR Contact:
David Barnard, Alliance Advisors Investor Relations, 415-433-3777,
[email protected]
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