Rubicon Provides Update on Progress of Strategic Plan
Rubicon Technologies, Inc. (NYSE: RBT) has reported significant strides in its strategic plan to achieve profitability and enhance financial flexibility. Key actions include extending debt maturities to December 2023, securing an additional $30 million in equity capital, simplifying capital structure by terminating Forward Purchase Agreements, and implementing cost reduction strategies. These efforts aim to improve working capital availability and drive shareholder value. CEO Phil Rodoni expressed confidence in the company's direction, underscoring ongoing support from investors.
- Extended near-term debt maturities to December 2023.
- Secured an additional $30 million of fully committed equity capital.
- Simplified capital structure by terminating Forward Purchase Agreements.
- Implemented cost reductions across the organization.
- None.
Company reports positive progress on recapitalization of debt, attraction of additional equity investment, material cost reductions, and simplification of capital structure
Rubicon’s strategic focus is to accelerate its progress to profitability by improving margins and reducing operating costs, and to increase financial flexibility by simplifying its capital structure. In support of these goals, Rubicon has executed on a number of initiatives which are already improving the availability of working capital for the Company and helping to drive shareholder value. The actions taken include:
-
Extending near-term debt maturities to
December 2023 ; -
Securing an additional
of fully committed equity capital from new and existing investors;$30 million - Simplifying the Company’s capital structure through the termination of Forward Purchase Agreements with both Atalaya and Vellar;
- Reducing costs across the organization, including measures designed to help optimize supplier costs and non-payroll general and administrative expenses, a previously announced reduction in force, and additional steps to help improve pricing within certain segments of Rubicon’s customer portfolio.
"We are pleased with our progress toward our key goals for this year and beyond. We believe that these steps address our current working capital needs and demonstrate clear advancement of our financial and operational objectives as detailed in our Q3 earnings materials,” said
For additional information please refer to Rubicon’s third quarter earnings materials and
About Rubicon
Forward-Looking Statements
This press release includes 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 (the “Exchange Act”), regarding, among other things, the plans, strategies and prospects, both business and financial, of Rubicon. Although Rubicon believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, Rubicon cannot assure you that it will achieve or realize these plans, intentions or expectations. All statements, other than statements of present or historical fact included in this press release, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “could,” “would,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends,” the negative of such terms and similar expressions, although not all forward-looking statements contain such identifying words. Forward-looking statements are inherently subject to risks, uncertainties and assumptions and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statement. These forward-looking statements are based upon current expectations, estimates, projections, and assumptions that, while considered reasonable by Rubicon and its management, are inherently uncertain; factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) the outcome of any legal proceedings that may be instituted against Rubicon or others following the closing of the business combination; 2) Rubicon’s ability to meet the New York Stock Exchange’s listing standards following the consummation of the business combination; 3) the risk that the business combination disrupts current plans and operations of Rubicon as a result of consummation of the business combination; 4) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; 5) costs related to the business combination; 6) changes in applicable laws or regulations; 7) the possibility that Rubicon may be adversely affected by other economic, business and/or competitive factors, including the impacts of the COVID-19 pandemic, geopolitical conflicts, such as the conflict between
View source version on businesswire.com: https://www.businesswire.com/news/home/20221207005222/en/
Investor Contact:
rubiconIR@icrinc.com
Media Contact:
Chief Marketing & Corporate Communications Officer
dan.sampson@rubicon.com
RubiconPR@icrinc.com
Source:
FAQ
What is the recent update from Rubicon Technologies, Inc. regarding their debt recapitalization?
How much equity capital has Rubicon secured recently?
What cost reduction measures is Rubicon implementing?
What are the key goals stated by Rubicon's CEO?