RYVYL Inc. Announces Launch of Proposed Underwritten Public Offering

Rhea-AI Summary

RYVYL Inc. announces the launch of a proposed underwritten public offering to raise capital for working capital and general corporate purposes. The offering includes an option for the underwriter to purchase additional shares, subject to market conditions.

Financial Analyst

RYVYL Inc.'s announcement on the initiation of an underwritten public offering of common stock is a strategic move to raise capital. The decision to grant the underwriter an option to purchase additional shares could potentially increase the total capital raised by up to 15%. This could suggest confidence from the underwriter in the company's market value and prospects. Investors should note that the use of the net proceeds for 'working capital and general corporate purposes' is quite broad and may indicate either a buffer for operational expenses or funding for upcoming projects that are not yet disclosed.

The execution of the offering under a previously filed shelf registration statement expedites the process, providing flexibility to the company in timing the market. The effectiveness of the shelf registration allows a more immediate response to market conditions, which could be advantageous in a volatile market environment. The role of Joseph Gunnar & Co., LLC, a relatively less known firm, as the sole book-running manager, might indicate a targeted approach for the offering, which could aim to attract specific institutional investors or investment communities.

Market Research Analyst

The involvement of blockchain ledger and electronic token technology in RYVYL's product offerings positions the company within two high-growth potential sectors: fintech and blockchain. Given the market trends, investors are showing increased interest in companies at the intersection of these technologies due to their disruptive potential. However, the inherent volatility of blockchain-related markets could influence the risk profile of the investment. Prospective investors should consider current market sentiment towards blockchain technologies, regulatory outlook and the competitive landscape when evaluating this offering.

The offering's success will likely depend on the market's perception of RYVYL's prospects and its current financial health, as well as the broader market conditions. A successful capital raise could signal market confidence in the company's growth trajectory, potentially impacting the stock positively in the short term. Long-term effects, however, will hinge on how effectively RYVYL deploys the capital towards revenue-generating initiatives.

Legal Expert

The fact that RYVYL is proceeding with an underwritten public offering under a shelf registration statement indicates their legal preparedness to access public markets swiftly. This move shows regulatory diligence, as the offering is contingent upon the legal framework set by the U.S. Securities and Exchange Commission. An effective shelf registration has a validity of three years, allowing companies like RYVYL to act opportunistically. The details provided in the preliminary prospectus supplement are critical for investors, as they include risk factors, management's discussion and analysis and financial statements, which are key for informed decision-making.

It is important for investors to review these legal documents to understand the specifics of the offering, including potential dilution, the company's strategic direction and the rights that will come with the securities being offered. The legal structure of the offering and the conditions set forth may also impact the stock's performance, as they determine how new shares will integrate with the existing capital structure.

San Diego, CA, April 15, 2024 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, today announced that it has commenced an underwritten public offering of shares of its common stock. All of the shares of common stock are being offered by RYVYL. In addition, RYVYL intends to grant the underwriter in the offering a 45-day option to purchase up to an additional 15% of the number of shares of common stock offered in the offering at the public offering price, less underwriting discounts and commissions. The offering is subject to market and other 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.

Joseph Gunnar & Co., LLC is acting as the sole book-running manager for the offering.

RYVYL intends to use the net proceeds from the offering for working capital and general corporate purposes.

A shelf registration statement on Form S-3 (File Nos. 333-257798) relating to the securities being offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 9, 2021 and became effective on July 19, 2021. The offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the proposed offering have been filed with the SEC and will be available on the SEC's website, located at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying prospectus may be obtained, when available, from Joseph Gunnar & Co., LLC, Attn: Syndicate Department, 40 Wall Street, Suite 3004, New York, NY 10005, by calling (212) 440-9600. Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus, together with the information incorporated therein, for more complete information about RYVYL and the proposed offering. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.

About RYVYL

RYVYL Inc. (NASDAQ: RVYL) Revolutionizing Global Payments: Our leading-edge blockchain ledger-based platform offers a seamless and secure payment experience tailored for the diverse and ever-evolving global market. By harnessing the power of blockchain technology, we ensure unparalleled security, transparency, and immutability in all transactions. Our commitment to simplicity guarantees a user-friendly interface accessible to everyone, while robust compliance measures instill trust and confidence across borders and regulatory landscapes.

For more information, visit 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 of the filing of the aforementioned periodic reports. 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 completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the SEC. Other risk factors affecting the Company are discussed in detail in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

Investor Relations Contact:
Mark Schwalenberg
MZ Group - MZ North America
312-261-6430
RVYL@mzgroup.us
www.mzgroup.us

What did RYVYL Inc. announce?

RYVYL Inc. announced the launch of a proposed underwritten public offering of shares of its common stock.

What is the ticker symbol for RYVYL Inc.?

The ticker symbol for RYVYL Inc. is RVYL.

Who is acting as the sole book-running manager for the offering?

Joseph Gunnar & Co., is acting as the sole book-running manager for the offering.

What will RYVYL Inc. use the net proceeds from the offering for?

RYVYL Inc. intends to use the net proceeds from the offering for working capital and general corporate purposes.

Where can investors find more information about the proposed offering?

Investors can find more information about the proposed offering on the SEC's website or by contacting Joseph Gunnar & Co.,