AppTech Payments Corp. Announces Proposed Underwritten Public Offering of Common Stock
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The announcement by AppTech Payments Corp. of a public offering comprising shares and pre-funded warrants represents a strategic move to raise capital. From a financial perspective, the key elements to focus on include the use of proceeds, the market's reception of the offering and the potential dilution effect on current shareholders. The company's intent to allocate funds for business integration, working capital and general corporate purposes is a common strategy aimed at fueling growth and operational efficiency.
However, the announcement's caution regarding market conditions and the lack of certainty about the completion and terms of the offering suggests a degree of market sensitivity. Investors and shareholders should monitor the uptake of the offering and the final terms, as these will impact the company's capital structure and share valuation. The role of EF Hutton LLC as the sole book-running manager indicates a streamlined approach to the offering, potentially expediting the process and minimizing underwriting costs.
The use of a 'shelf' registration statement allows for a more rapid issue of securities, indicating that AppTech is seeking timely access to capital. This can be a double-edged sword, as market conditions at the time of the offering will greatly influence the success of the capital raise and the subsequent share price performance.
AppTech's reliance on a 'shelf' registration statement for the offering is a regulatory mechanism that allows for flexibility and speed in capital raising. The SEC's clearance of this statement back in July 2022 means that the company has met the necessary regulatory requirements to proceed with the offering at any time within a set period. The preliminary prospectus supplement and accompanying prospectus are important documents that provide investors with detailed information about the offering and the associated risks.
Legally, the company must ensure that all material information is disclosed to potential investors. This includes the risks associated with the offering, the intended use of proceeds and the potential impact on the company's financial position. The fact that the offering is underwritten also suggests a level of confidence from EF Hutton LLC in AppTech's value proposition and market prospects.
Investors should closely scrutinize the prospectus and other incorporated documents for a comprehensive understanding of the investment. Any discrepancies or omissions in these documents could have legal ramifications and impact investor confidence.
In the context of the fintech industry, AppTech Payments Corp.'s move to raise capital through a public offering is indicative of the sector's ongoing need for investment in technology and market expansion. The decision to use the proceeds for integration of existing business suggests a focus on consolidating operations, which is often a precursor to scaling efforts or improving competitive positioning.
Given the competitive nature of the fintech space, with constant innovation and regulatory changes, AppTech's ability to secure additional funding can be seen as a positive indicator of its growth trajectory and the confidence of its management in its strategic plans. However, it is essential to consider how this offering aligns with industry trends, such as the increasing importance of digital payments and the integration of financial services.
Investors should evaluate AppTech's market position, its competitive advantages and the potential return on investment from the areas targeted for the use of proceeds. The success of the offering and the company's subsequent performance will also depend on broader market trends, including investor appetite for fintech stocks and the performance of the tech sector as a whole.
CARLSBAD, Calif., March 25, 2024 (GLOBE NEWSWIRE) -- AppTech Payments Corp. (Nasdaq: APCX) (“AppTech” or the “Company”), a pioneering Fintech company powering frictionless commerce, today announced that it intends to offer to sell shares of its common stock and pre-funded warrants to purchase shares of its common stock in an underwritten public offering. All of the shares of common stock and pre-funded warrants are to be sold by the Company. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
EF Hutton LLC is acting as the sole book-running manager for the offering.
AppTech intends to use the net proceeds from the offering for integration of existing business, working capital and general corporate purposes.
The securities will be offered and sold pursuant to a "shelf" registration statement on Form S-3 (File No. 333-265526), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 10, 2022, as amended on July 8, 2022, and declared effective on July 15, 2022. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC and will be available on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may also be obtained by contacting EF Hutton LLC Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at syndicate@efhutton.com, or by telephone at (212) 404-7002. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference into such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.
About AppTech Payments Corp.
AppTech Payments Corp. (NASDAQ: APCX) provides digital financial services for financial institutions, corporations, small and midsized enterprises (“SMEs”), and consumers through the Company’s scalable cloud-based platform architecture and infrastructure, coupled with our Specialty Payments development and delivery model. AppTech maintains exclusive licensing and partnership agreements in addition to a full suite of patented technology capabilities. For more information, please visit apptechcorp.com.
Notice Regarding Forward-Looking Statements
The information contained herein includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, among others, statements regarding the proposed public offering, and the timing and the use of the proceeds from the offering. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. Except as may be required by applicable law, The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact
CORE IR
Scott Arnold
scotta@coreir.com
AppTech Payments Corp.
760-707-5959
info@apptechcorp.com
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