RYVYL Executes NEW MOU with Securityholder to Retire 8% Senior Convertible Note and Series B Convertible Preferred Stock
Rhea-AI Summary
RYVYL Inc. (NASDAQ: RVYL) has entered into a new non-binding Memorandum of Understanding (MOU) with a securityholder to retire debt instruments. The agreement includes:
- A first tranche payment of $13.0 million to redeem all Series B Convertible Preferred Stock and partially pay an 8% Senior Convertible Note, leaving a $4.0 million balance
- The remaining $4.0 million balance will have an advanced maturity date of April 30, 2025
The company must execute definitive agreements and pay the first tranche by January 27, 2025, or the MOU expires. RYVYL can extend this deadline to February 3, 2025, for an additional $50,000. Upon payment, certain restrictive covenants will be waived, contingent on paying the remaining balance by April 30, 2025. Until the first payment, the securityholder retains conversion rights for both instruments.
Positive
- Potential reduction of debt obligations through retirement of convertible note and preferred stock
- Opportunity to remove restrictive covenants upon completion of payments
- Structured payment plan with clear timeline for debt resolution
Negative
- Significant cash outlay required ($13 million) by January 27, 2025
- Risk of MOU expiration if payment deadline not met
- Possibility of restrictive covenants returning if final payment not made by April 30, 2025
News Market Reaction – RVYL
In the trading session that priced this news, RVYL gained 1.28%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SAN DIEGO, CA, Jan. 22, 2025 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, has entered into a new non-binding Memorandum of Understanding with a securityholder of the Company, replacing a previously announced Memorandum of Understanding, which expired on November 29, 2024 (the “New MOU”) for the full repayment and termination of an
- A first tranche payment of
$13.0 million for the redemption of all of the shares of Preferred Stock held by the Securityholder, and payment of a portion of the outstanding balance of the Note so that the remaining outstanding principal balance will be$4.0 million . - Advancing the maturity date for the remaining balance of
$4.0 million due under the Note, following payment of the first tranche, to April 30, 2025.
The Company is required to execute definitive agreements with the Securityholder (the “Definitive Agreements”) and pay the first tranche payment of
- Upon payment of the first tranche payment and execution of the Definitive Agreements, certain restrictive covenants contained in the transaction documents pursuant to which the Note and the shares of Preferred Stock were issued will be waived, as long as the Company pays the remaining
$4.0 principal balance of the Note ($4,050,000 , if the date of the first tranche payment date is extended) on or before April 30, 2025. If the Company fails to pay the remaining balance by such date, all restrictive covenants will go back into effect. - Prior to payment of the first tranche payment, the Securityholder shall retain the ability, subject to certain market limitations, to convert the Note and the Preferred Stock into common stock.
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes 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. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee's ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries - particularly industries with heightened cash reporting obligations and restrictions - as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company's periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.
IR Contact:
David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com
