SurgePays Announces Closing of $2.5 Million Public Offering
Rhea-AI Summary
SurgePays (NASDAQ:SURG) announced the closing of an underwritten public offering of 2,000,000 shares of common stock at $1.25 per share on January 26, 2026, producing gross proceeds of approximately $2.5 million.
The company granted the underwriter a 45-day option to purchase up to an additional 300,000 shares to cover over-allotments. R.F. Lafferty & Co. acted as sole book-running manager. The shares were offered under a shelf registration on Form S-3 (declared effective November 3, 2023) and the offering materials were filed with the SEC.
Over 100 retail investors participated; reported proceeds are before underwriting discounts and offering expenses.
Positive
- Gross proceeds of approximately $2.5 million
- Participation from over 100 retail investors
- 45-day overallotment option for up to 300,000 additional shares
Negative
- Underwriting discounts and offering expenses will reduce net proceeds
- Issuance of 2,000,000 shares creates shareholder dilution risk
Key Figures
Market Reality Check
Peers on Argus
Key telecom peers (e.g., UCL -5.49%, FNGR -4.07%) traded lower, but no peers appeared in the momentum scanner, suggesting this offering headline is company-specific.
Previous Offering Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 21 | Offering pricing | Negative | -35.8% | Priced 2,000,000-share offering at $1.25 with $2.5M gross proceeds. |
| Jan 20 | Offering launch | Negative | -1.6% | Announced proposed underwritten public offering under existing Form S-3. |
Recent offering-related announcements have coincided with negative one-day price moves, indicating a history of weak reactions to equity raise news.
Over recent months, SurgePays has combined rapid growth with repeated capital markets activity. Prior offering headlines on Jan 20 and Jan 21 detailed the launch and pricing of this same equity raise and saw negative price reactions of -1.58% and -35.83%. Earlier in Q3 2025, the company reported strong revenue growth and launched its ProgramBenefits platform, but those updates also coincided with share price declines, underscoring sensitivity to financing and execution risk.
Historical Comparison
Prior offering headlines on Jan 20 and Jan 21 prompted generally negative reactions, with an average move magnitude of about 18.7%. Today’s closing announcement follows the same financing sequence and fits into this recent pattern of equity-raise driven volatility.
This news completes a short sequence: an offering was proposed, then priced, and has now closed, using the same underwritten structure and terms previously outlined.
Market Pulse Summary
This announcement confirms the closing of SurgePays’ underwritten offering of 2,000,000 shares at $1.25, for gross proceeds of $2.5 million. It follows earlier proposed and pricing releases, completing the capital-raise sequence. Historically, similar financing news has coincided with notable one-day moves, underscoring sensitivity to dilution and funding. Investors may track how the added capital supports operations and whether future updates focus more on execution than new equity raises.
Key Terms
underwritten public offering financial
shelf registration statement regulatory
form s-3 regulatory
prospectus supplement regulatory
AI-generated analysis. Not financial advice.
Over 100 retail investors participated in the transaction
BARTLETT, Tenn., Jan. 26, 2026 (GLOBE NEWSWIRE) -- SurgePays, Inc. (NASDAQ: SURG), a wireless and fintech point of sale company connecting subprime and underserved consumers to essential mobile and financial services, today announced the closing of its previously announced underwritten public offering of 2,000,000 shares of common stock at a public offering price of
In addition, the Company granted the underwriter a 45-day option to purchase up to an additional 300,000 shares of common stock at the public offering price per share, less underwriting discounts, to cover over-allotments, if any.
R.F. Lafferty & Co., Inc. acted as the sole book-running manager for the offering.
The shares of common stock were offered by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-273110), which was filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on November 3, 2023. The offering was made only by means of a prospectus supplement and accompanying prospectus, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 SurgePays, Inc.
SurgePays, Inc. (NASDAQ: SURG) is a wireless and fintech technology company focused on expanding access to essential mobile and financial services for subprime and underserved consumers. The company operates a nationwide ecosystem that includes its own wireless brands and a proprietary point of sale platform inside thousands of retail locations. This infrastructure supports SIM activations, top-ups, financial transactions, and other digital services used daily by prepaid and underbanked customers.
SurgePays is building on this foundation by advancing into data driven marketing and digital partnerships that monetize verified consumer engagement. This approach creates recurring, high margin revenue streams while expanding the company’s reach across both online and retail channels. SurgePays aims to become a leading digital marketplace and data intelligence platform serving the one-third of America that relies on prepaid and subprime financial services.
Visit www.SurgePays.com and WWW. ProgramBenefits for more information.
SurgePays Cautionary Note Regarding 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 and generally relate to future events or our future financial or operating performance. These statements may include projections, guidance, or other estimates regarding revenue, cash flow, business growth, market expansion, or customer acquisition, and statements relating to the anticipated use of proceeds from the offering and the expected impact of the offering on the Company’s business and financial condition. 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,” “attempting,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Although we believe the expectations reflected in these forward-looking statements, such as regarding our ability to obtain revenue from the launch of ProgramBenefits.com, 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 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, the assumption that the Company will be able to obtain high-margin recurring revenues, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; and our predictions about our industry and customer demand. These include, but are not limited to, our ability to scale our prepaid wireless business, transition ACP subscribers to Lifeline, maintain our MVNE partnerships, and achieve financial targets.
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, 2024. 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.
Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
PH: 212-896-1254
SurgePays@KCSA.com
FAQ
How many shares did SurgePays (SURG) sell in the January 26, 2026 offering?
What were the gross proceeds from the SurgePays (SURG) offering on January 26, 2026?
Does SurgePays (SURG) have an option to sell more shares after the January 26, 2026 offering?
Who managed the SurgePays (SURG) public offering completed January 26, 2026?
Where can investors find the offering documents for SurgePays (SURG)?
