SurgePays, Inc., a leader in wireless and fintech solutions, has announced a significant financial milestone with the securing of a $7 million senior secured convertible note. This financing, arranged with an existing institutional shareholder, includes $6 million in cash and a repurchase of 333,333 shares, marking a pivotal moment in the company's growth trajectory. The two-year note is convertible at $4.00 per share, a premium over the current market price, and features a prepayment option at a 2% premium, offering SurgePays enhanced financial flexibility.
This capital injection is timely for SurgePays, following its recent integration with AT&T on April 1. The funds are earmarked for the national rollout of LinkUp Mobile and the expansion of its mobile virtual network enabler (MVNE) wholesale platform. These initiatives are part of SurgePays' broader strategy to solidify its presence in the telecommunications and fintech sectors, with management projecting revenues exceeding $200 million and positive cash flow from operations by the end of 2025.
SurgePays distinguishes itself in the market through its dual role as both a mobile virtual network operator and enabler, providing essential wireless connectivity and financial services to underserved communities. The company's proprietary point-of-sale platform, operational in thousands of retail locations across the country, facilitates SIM activations, top-ups, and digital financial services. This robust infrastructure is a cornerstone of SurgePays' strategy to scale its operations across retail and wholesale wireless channels.
The strategic financing underscores SurgePays' commitment to innovation and expansion in the competitive telecommunications and fintech landscapes. By leveraging this funding, SurgePays aims to enhance its technological infrastructure and broaden its service offerings, ensuring it remains at the forefront of connecting and empowering underserved populations through cutting-edge wireless and financial solutions.
