SurgePays Announces Pricing of $15 Million Public Offering
SurgePays, Inc. (Nasdaq: SURG) has announced the pricing of its previously announced underwritten public offering of 2,678,571 shares of its common stock at an offering price of $5.60 per share, with an expected gross proceeds of approximately $15 million. The offering is expected to close on January 22, 2024, subject to customary conditions.
The announcement by SurgePays, Inc. of its underwritten public offering of common stock is a significant event that will likely influence the company's capital structure and liquidity. The pricing of the shares at $5.60 indicates the company's valuation in the eyes of institutional investors, which is a critical factor for potential and current shareholders. A key aspect to consider is the use of the proceeds; if allocated towards growth initiatives or debt reduction, it could enhance the company's financial position and potentially lead to an appreciation in stock value.
Another element to consider is the 'shelf' registration statement, which allows the company to sell securities in one or more separate offerings with the flexibility of timing and amounts. This could indicate a strategic approach to financing, allowing SurgePays to tap into the market opportunistically. The 45-day option for underwriters to purchase additional shares could also provide a cushion against market volatility, potentially stabilizing the stock price post-offering.
SurgePays operates in the niche market of serving underbanked and underserved communities, which is a sector with significant growth potential. The successful closure of the offering could signal investor confidence in the company's business model and future prospects. It's crucial to analyze the competitive landscape and SurgePays' market positioning to understand how the influx of $15 million, before expenses, might bolster its competitive edge.
Furthermore, the involvement of new and existing institutional investors could be indicative of broader market interest and could potentially attract further attention to the company's stock. The role of Titan Partners Group as the sole book-running manager suggests a level of credibility and expertise in handling such financial transactions, which might reassure investors.
Compliance with SEC regulations is paramount in any public offering. The effective 'shelf' registration statement and the filing of a preliminary prospectus supplement with the SEC are steps that demonstrate SurgePays' adherence to the necessary legal frameworks. It's important to monitor the final terms disclosed in the final prospectus supplement for any material changes that could affect investor decisions.
Additionally, the clear statement that this press release does not constitute an offer to sell securities is a standard regulatory disclaimer to prevent any misinterpretation of the communication as an offer, which could have legal ramifications.
01/17/2024 - 08:01 PM
BARTLETT, Tenn., Jan. 17, 2024 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays”), a technology and telecom company focused on the underbanked and underserved communities, today announced that it has priced its previously announced underwritten public offering of 2,678,571 shares of its common stock at an offering price of $5.60 per share of common stock led by certain new and existing institutional investors. SurgePays has granted the underwriters a 45-day option to purchase up to 401,785 additional shares of its common stock sold in the offering on the same terms and conditions. The Company expects to close the offering on January 22, 2024, subject to customary conditions.
Titan Partners Group, a division of American Capital Partners, is acting as sole book-running manager for the offering.
The gross proceeds to the Company from the offering are expected to be approximately $15 million , before deducting the underwriting discounts, commissions and other offering expenses payable by the Company.
The offering is being made pursuant to an effective “shelf” registration statement on (File No. 333-273110) previously filed with the Securities and Exchange Commission (the “SEC”) on July 3, 2023, as amended on August 4, 2023, September 9, 2023, October 23, 2023, and declared effective by the SEC on November 3, 2023. The securities may be offered only by means of a prospectus. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC. Electronic copies of the final prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Titan Partners Group, LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at info@titanpartnersgrp.com.
This press release does 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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About SurgePays
SurgePays, Inc. is a technology and telecom company focused on the underbanked and underserved communities. SurgePays technology layered platform empowers clerks at over 8,000 convenience stores to provide a suite of prepaid wireless and financial products to underbanked customers. SurgePays prepaid wireless companies provide services to over 250,000 low-income subscribers nationwide.
Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, satisfaction of customary closing conditions related to the offering and sale of the common stock and SurgePays ability to complete the offering. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the preliminary prospectus supplement and the accompanying prospectus related to the proposed public offering. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Contact Information
Brian M. Prenoveau, CFA
MZ Group – MZ North America
brian.prenoveau@mzgroup.us
+561 489 5315
What is the offering price of SurgePays, Inc. (Nasdaq: SURG) common stock?
The offering price of SurgePays, Inc. common stock is $5.60 per share.
How many shares are included in SurgePays, Inc. (Nasdaq: SURG) underwritten public offering?
SurgePays, Inc. underwritten public offering includes 2,678,571 shares of its common stock.
What is the expected gross proceeds from the underwritten public offering of SurgePays, Inc. (Nasdaq: SURG)?
The expected gross proceeds from the underwritten public offering of SurgePays, Inc. are approximately $15 million.
When is the expected closing date for the underwritten public offering of SurgePays, Inc. (Nasdaq: SURG)?
The underwritten public offering of SurgePays, Inc. is expected to close on January 22, 2024, subject to customary conditions.
