SurgePays and LowWeeklyPayments Sign Joint Venture LOI as Smartphone Rent-to-Own Program Scales Past 100 Dealers

SurgePays (SURG) signed a non-binding letter of intent with All Prepaid’s LowWeeklyPayments to form a joint venture expanding a smartphone rent-to-own program across the SurgePays independent retail dealer network.

Rhea-AI Summary

SurgePays (SURG) signed a non-binding letter of intent with All Prepaid’s LowWeeklyPayments to form a joint venture expanding a smartphone rent-to-own program across the SurgePays independent retail dealer network.

The venture will operate through LWP-SURGE, LLC, formed on September 2, 2026, with SurgePays owning 51% and serving as Managing Member, and LWP holding 49%. The structure combines SurgePays’ dealer distribution, recruiting and shared infrastructure with LWP’s proprietary rent-to-own platform, approval matrix and in-store payment technology. The program targets subprime and underserved consumers and has already helped SurgePays onboard more than 100 dealers, with a goal of reaching 500 locations by year end as the parties work toward a definitive operating agreement.

Positive

• SurgePays 51% JV stake with Managing Member role in LWP-SURGE, LLC
• 100+ dealers already onboarded using the LWP rent-to-own platform
• Management targets expanding program to 500 locations by year end

Negative

• Current agreement is a non-binding LOI; definitive JV terms are not yet finalized

News Explained

The announced 51% SurgePays interest remains within a non-binding framework: governance, funding, and operating terms still require a definitive agreement, so the proposed control structure is not yet a completed operating arrangement.

Argus 15 min delay

+28.70% vs previous close $0.19 last price 124.0x rel. volume Open Argus

Details

Market reaction after rent-to-own partnership LOI: SURG +28.70%

+30.4% Peak Tracked

-7.2% Trough Tracked

$0.14 $0.23 Day Range

$9.80M Market Cap

Following this news, SURG has gained 28.70%, reflecting a significant positive market reaction. Argus tracked a peak move of +30.4% during the session. Argus tracked a trough of -7.2% from its starting point during tracking. Our momentum scanner has triggered 82 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $0.19. Trading volume is exceptionally heavy at 124.0x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

Pre-headline, SURG was down 4.89% from its prior close while the earlier August 11 rent-to-own updat...

Analysis

Pre-headline, SURG was down 4.89% from its prior close while the earlier August 11 rent-to-own update drew a -0.23% 24-hour reaction; that record adds market context to this non-binding expansion announcement.

Key Figures

SurgePays ownership: 51% LWP ownership: 49% Dealers onboarded: 100+ dealers +1 more

SurgePays ownership

51%

Proposed joint venture interest

LWP ownership

49%

Proposed joint venture interest

Dealers onboarded

100+ dealers

Smartphone rent-to-own program

Year-end location target

500 locations

Smartphone rent-to-own program

Key Terms

letter of intent, rent-to-own agreement, managing member, limited liability company

4 terms

letter of intent financial

"has signed a non-binding letter of intent with All Prepaid, LLC"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

rent-to-own agreement financial

"take home a smartphone under a rent-to-own agreement"

A rent-to-own agreement is a contract where a tenant rents an asset (often a home, vehicle or appliance) and has the option to buy it later, with some portion of the rent typically credited toward the purchase price. It matters to investors because it changes the timing and character of revenue, cash flow, credit exposure and residual value for companies that offer or finance these deals—think of it like a long rental that can convert into a sale, affecting risk and return profiles.

managing member regulatory

"serve as its Managing Member"

A managing member is an owner of a limited liability company (LLC) who also has the authority and responsibility to run the company’s day-to-day operations and make business decisions on behalf of the LLC. For investors, this matters because the managing member holds the key decision-making power and accountability—like a team captain who both owns part of the team and calls the plays—which affects strategy, risk, and how quickly the company can act.

limited liability company regulatory

"a Wyoming limited liability company formed on September 2, 2026"

A limited liability company (LLC) is a business structure that separates the owners’ personal assets from the company’s debts and legal obligations, like a protective shield that keeps personal savings and property distinct from business risk. For investors, that protection reduces personal financial exposure and often brings flexible rules for profit sharing and taxes, but it can also affect how easily interests are bought or sold and how decisions are made.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SurgePays to hold 51% stake as joint venture builds on early rent-to-own traction, with 100+ dealers onboarded and 500 locations targeted by year end

BARTLETT, Tenn., Sept. 17, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. (NASDAQ: SURG) (“SurgePays” or the “Company”), a wireless and fintech company, today announced that it has signed a non-binding letter of intent with All Prepaid, LLC, dba LowWeeklyPayments (“LWP”), to form a joint venture to scale the smartphone rent-to-own program across the SurgePays independent retail dealer network.

The LWP rent-to-own program allows subprime consumers to take home a smartphone under a rent-to-own agreement with low weekly payments, and to own the device outright once the payments are complete. Any consumer can apply regardless of credit history or bank account, which makes the program a natural fit with the subprime and underserved customers who already shop in the SurgePays dealer network. The joint venture will be operated through LWP-SURGE, LLC, a Wyoming limited liability company formed on September 2, 2026.

Under the terms of the letter of intent, SurgePays will hold a 51% interest in the joint venture and serve as its Managing Member, and LWP will hold a 49% interest. The joint venture will combine SurgePays’ independent retail dealer distribution channel, dealer recruiting and field enablement, and shared corporate infrastructure with LWP’s proprietary rent-to-own platform, approval matrix, and in-store payment technology.

“At LWP, we built our approval matrix and rent-to-own platform to reach the customers that traditional financing programs turn away, the same subprime and underserved consumers SurgePays built its business around, and their dealer network gives that platform a distribution footprint we could not reach on our own,” said Enrique Hirlemann, Co-Founder of LWP. “Signing this letter of intent is a big step toward building that reach together, and we are looking forward to bringing this program to many more dealers and customers.”

“The purpose of this joint venture is to maximize the preliminary success of the rent-to-own business we have seen firsthand,” said Derron Winfrey, President, Sales and Operations, of SurgePays. “We know people want great smartphones, but we also know many cannot afford them. Additionally, dealers have inventories of phones they need to move consistently, and we saw an opportunity where dealers, customers, and SurgePays all win. Adding the LWP platform to our product suite has driven some of the best store acquisition results we have seen, helping us onboard more than 100 dealers already.”

The parties are now working to finalize a definitive operating agreement to formalize the joint venture, incorporating the governance, funding, and operating terms outlined in the letter of intent. SurgePays believes this joint venture represents a meaningful opportunity to build long term shareholder value, and the Company will provide additional updates as the venture advances.

About SurgePays, Inc.

SurgePays, Inc. (NASDAQ: SURG) is a wireless and fintech company connecting subprime and underserved consumers to essential mobile and financial services. The Company operates a nationwide retail network and proprietary technology platform that enables the distribution of wireless services, financial products, and essential services to consumers who primarily transact in person. By combining physical distribution with data driven technology, SurgePays is building a scalable platform designed to increase engagement and drive recurring revenue across multiple product categories. For more information, please visit www.surgepays.com.

About LowWeeklyPayments

All Prepaid, LLC, dba LowWeeklyPayments (“LWP”), is a Florida limited liability company headquartered in Doral, Florida that operates a rent-to-own platform focused on making quality smartphones and other electronics accessible to underbanked and subprime consumers. Under the LWP program, LWP purchases the product from participating retailers and rents the device to the customer under a low weekly payment structure until it is paid off, at which point the customer owns the device outright. The LWP approval matrix is designed to deliver materially higher approval rates than traditional programs, enabling retail dealers to convert customers who would otherwise be turned away at the counter. For more information, please visit www.AllPrepaidRTO.com.

Forward-Looking Statements

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed joint venture between SurgePays and LWP, the anticipated growth, scale, and expansion of the smartphone rent-to-own program, target store counts, the timing of the negotiation and execution of definitive agreements and the commencement of operations of LWP-SURGE, LLC, and the future performance of the Company. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, and actual results could differ materially from those expressed or implied. The letter of intent described in this release is non-binding except as expressly provided therein, and there can be no assurance that the parties will negotiate or execute definitive agreements, meet the target dates described herein, achieve the store counts described herein, or complete the proposed joint venture on the terms described herein or at all. Factors that could cause actual results to differ materially include, among others, the risks and uncertainties described in the filings of the Company with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. SurgePays undertakes no obligation to update or revise any forward looking statements, except as required by law.

Investor Relations Contact

SurgePays, Inc.
ir@surgepays.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is LWP-SURGE, LLC and when was it created?

LWP-SURGE, LLC is the entity through which the joint venture will operate. It is a Wyoming limited liability company formed on September 2, 2026.

Who are the target customers for the rent-to-own smartphone program?

The program targets subprime and underserved consumers, including those without traditional credit histories or bank accounts, aligning with the customer base that already shops in the SurgePays dealer network.