In a strategic move aimed at strengthening its financial foundation, AppTech Payments Corp. (NASDAQ:APCX) recently announced a significant agreement with a warrant holder. This pivotal deal, solidified on Tuesday, involves the exercise of existing warrants for approximately 1.67 million shares at a reduced price, generating around $1.17 million in gross proceeds.
Key Points:
– Originally priced at $2.74 per share and issued in October 2023, the warrants were exercised at a revised price of $0.70 per share.
– AppTech has committed to issuing new unregistered warrants for roughly 3.33 million shares, also at $0.70 each. These warrants will be exercisable six months post-issuance and will have a term of five and a half years.
– The company expects to intensify its working capital and bolster support for general corporate purposes through this financing maneuver, which is projected to be completed by Saturday.
Furthermore, Rodman & Renshaw LLC will serve as the exclusive placement agent for the transaction, with AppTech agreeing to cover associated fees, including a 7% cash fee of the gross proceeds, $75,000 for non-accountable expenses, and a $15,950 clearing fee.
Additionally, AppTech has agreed to a 45-day restriction on equity sales after the closing and a six-month moratorium on variable rate transactions, with specific exceptions. The company has also amended existing warrants from February 2023, lowering their exercise price to $0.70 and extending their lifespan following the completion of the current transaction.
The new warrants and their corresponding shares have not been registered under the Securities Act but are being offered privately, adhering to specific exemptions. AppTech has committed to filing a registration statement for the resale of these new warrant shares within 30 days of the agreement and ensuring its effectiveness within a specified timeframe.
In light of recent news related to potential delisting from the Nasdaq Capital Market due to an equity shortfall, AppTech Payments Corp. has unveiled a strategic partnership with FISB Solutions to modernize core banking systems for community banks. This collaboration aims to integrate neo-bank technologies, enhancing the digital capabilities of these institutions.
Moreover, the company has priced its public offering of 2 million shares at $1.00 each, managed by EF Hutton LLC, to raise $2 million before deductions. The proceeds will be utilized to integrate AppTech’s current business, working capital, and general corporate purposes.
Conclusion:
With the completion of the pilot program for its Banking-as-a-Service platform and the forthcoming commercial launch of InstaCash, AppTech Payments Corp. is poised for significant growth and expansion in the fintech industry. The recent financing activities, strategic partnerships, and public offering highlight the company’s commitment to innovation and financial sustainability. Investors and stakeholders keen on the company’s progress are encouraged to stay informed and monitor its development closely.
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