Lendway, Inc. Announces Rights Offering and Plan to Adopt New Corporate Name
Rhea-AI Summary
Lendway (Nasdaq:LDWY) announced a strategic rights offering to reduce debt, strengthen the balance sheet, and fund strategic investments, while changing its legal name to Bloomia Holdings, Inc. The company said proceeds would settle a sellers' note for $7.33M (resulting in a stated $8.0M gain and about $1.6M annual interest savings), repay related party notes of $6.6M (with over $600k annual interest savings), and allocate $1.37M to strategic investments, plus ~$200k fees, for a total offering size of $15.5M. Management said the transaction could reduce overall debt by up to 40% immediately and potentially by 70% early this Summer if the offering is successful; the company plans to begin trading under ticker TULP when the name change is effective.
Positive
- Seller note settlement of $7.33M yielding a stated $8.0M gain
- Projected annual interest savings of over $2.2M combined
- Immediate potential debt reduction up to 40% after offering
Negative
- Stated benefits depend on successful completion of the rights offering; failure would leave current debt levels unchanged
Key Figures
Market Reality Check
Peers on Argus
LDWY gained 6.92% while peers showed mixed moves: DRCT was sharply up, STFS was down, and others modestly positive or negative. With only 1 peer in the same momentum scan direction and others diverging, trading appeared stock-specific rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Quarterly earnings | Negative | -9.3% | Weaker September 2025 results with revenue decline and wider operating loss. |
| Aug 28 | Quarterly earnings | Positive | +2.2% | Strong Q2 2025 with higher net revenue and return to profitability. |
| Aug 19 | Governance update | Neutral | -1.8% | Announcement of 2025 annual meeting date and proposal deadlines. |
Limited history shows price generally moving in the direction implied by earnings news, with weak quarters sold and strong quarters bid.
Over the last few quarters, Lendway’s results have been volatile. On Aug 28, 2025, strong Q2 2025 earnings with $23.2M net revenue and a return to profitability saw shares rise modestly. By Nov 10, 2025, weaker September-quarter results, including revenue slipping to about $5.2M and a wider operating loss, led to a near 9% decline. A governance-focused annual meeting announcement on Aug 19, 2025 drew only a small negative reaction. Today’s rights offering centers on balance-sheet repair rather than operating performance.
Market Pulse Summary
This announcement centered on a strategic rights offering aimed at materially reducing leverage and strengthening the balance sheet. Management described retiring over $15 million of debt for $7.3 million, plus further reductions that could lower overall debt by up to 70%. The use-of-proceeds table emphasized interest savings and room for strategic investments. Investors may watch execution of the offering, actual debt reduction achieved, and how the lower interest burden translates into future earnings performance.
Key Terms
rights offering financial
sellers' note financial
AI-generated analysis. Not financial advice.
MINNEAPOLIS, MN / ACCESS Newswire / January 23, 2026 / Lendway, Inc. (Nasdaq:LDWY) (the "Company") today announced its plan to conduct a strategic rights offering which is intended to significantly reduce the Company's debt and strengthen its balance sheet. Specifically, the primary purpose of the rights offering is to allow the Company to take advantage of a negotiated option with the previous owners of the Company's Bloomia operating business to settle their sellers' note for a discount exceeding
Lendway's Chairman and Co-Chief Executive Officer, Mark Jundt, commented, "We are very excited about the future of the Company and encourage our stockholders to recognize the unique opportunity in front of us. We have a very limited time opportunity to retire over
As part of this historic opportunity, the Company will also be changing its corporate name to "Bloomia Holdings, Inc." The legal name change will be effective in the coming weeks, at which time the Company will begin trading on NASDAQ under the new ticker symbol: TULP. "Tulp" is the Dutch word for tulip, honoring the original Dutch legacy of the Company's operating business, Bloomia.
Intended Rights Offering Use of Proceeds
Use of proceeds (in '000s) | Amount | Projected Impact |
Seller note settlement | ||
Related party notes settlement | Over | |
Strategic investments | Reduce operating cost and improve quality | |
Estimated Offering fees and costs | ||
TOTAL | De-levered Bloomia, poised for growth |
About Lendway, Inc.
Lendway, Inc. (Nasdaq:LDWY) is a specialty ag company focused on making and managing its ag investments in the U.S. and internationally. The Company is the majority owner of Bloomia, one of the largest producers of fresh-cut tulips in the United States. For additional information, contact (800) 874-4648 or visit our website at www.lendway.com. Investor inquiries can be submitted to info@lendway.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not statements of historical or current facts are considered "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from the results or performance expressed or implied by such forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "future," "groundwork," "intend," "likely," "may," "plan," "project," "set ourselves up," "will" and similar expressions identify forward-looking statements. Forward-looking statements include statements expressing the intent, belief or current expectations of the Company and members of our management team regarding, for instance: (i) our belief that our cash balance, cash generated by operations and borrowings available under our Credit Agreement, will provide adequate liquidity and capital resources for at least the next twelve months and (ii) regarding the potential for growth and other opportunities for our business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. These statements are subject to the risks and uncertainties that could cause actual results to differ materially and adversely from the forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes.
Factors that could cause our estimates and assumptions as to future performance, and our actual results, to differ materially include the following: (1) our ability to complete the rights offering and the level of participation in, and correspondence proceeds received from us from, the rights offering, (2) our ability to compete, (3) concentration of revenue among a small number of customers, (4) dependency on Dutch tulip bulbs, (5) changes in interest rates, (6) ability to comply with the requirements of our credit agreement and operate within its restrictions, (7) economic and market conditions that may restrict or delay appropriate or desirable opportunities, (8) our ability to develop and maintain necessary processes and controls relating to our businesses, (9) reliance on one or a small number of employees, (10) our ability to generate enough cash or secure enough capital to execute our business plans, (11) our ability to obtain seasonal workers, (12) other economic, international, business, market, financial, competitive and/or regulatory factors affecting the Company's businesses generally, (13) exchange rate fluctuations, (14) tariffs, and (15) the availability of additional capital on desirable terms, if at all. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including those set forth in our Transition Report on Form 10-KT for the six months ended June 30, 2025 and additional risks, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with the Company's filings with the SEC. The Company assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.
Biz McShane, CFO (763-392-6200)
SOURCE: Lendway, Inc.
View the original press release on ACCESS Newswire
FAQ
What is the size and purpose of the Lendway (LDWY) rights offering announced January 23, 2026?
How much debt does Lendway (LDWY) expect to retire with the rights offering?
What are the expected interest savings from Lendway's (LDWY) proposed use of proceeds?
When will Lendway (LDWY) change its name and ticker to Bloomia Holdings and TULP?
Will Lendway insiders participate in the rights offering (LDWY)?
How will Lendway (LDWY) allocate the rights offering proceeds across uses?
