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RYVYL Announces Second Exchange Agreement with Convertible Noteholder; Reducing Company Debt by more than $60 million
SAN DIEGO, CA, Nov. 28, 2023 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL" or the "Company"), a leading innovator of payment transaction solutions
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[{"type":"text","content":"SAN DIEGO, CA, Nov. 28, 2023 (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, announced today the Company entered into a second exchange agreement with an existing noteholder (the “Noteholder”), to forbear the note repayment requirement until April 5th, 2025 and exchange the outstanding principal in a new authorized series of preferred stock. Under the terms of the Exchange Agreement , the Company and the Noteholder have agreed to exchange, upon satisfaction of all applicable closing conditions (or waiver of any of such conditions), (i) 6,000 shares of Series A Convertible Preferred Stock, (ii) the right to the exchange the shares of Unissued Series A Preferred Stock for an additional $16,703,000 of principal of the Note, and (iii) $40,000,000 of the outstanding principal under the Note for 55,000 shares of a newly authorized series of preferred stock of the Company designated as Series B Preferred Convertible Stock (the “Series B Preferred Stock”), the terms of which will be set forth in a Certificate of Designations of Rights and Preferences of Series B Convertible Preferred Stock of RYVYL, Inc. (the “Series B Certificate of Designations”), which the Company will file with the Nevada Secretary of State prior to the initial issuance of any shares of Series B Preferred Stock. As an additional consideration for the Exchange, the Company has also agreed to make a cash payment to the Investor in the amount of $3,000,000 for an additional $3,600,000 reduction in principal of the Note. At the anticipated closing date on or around 11/29/23, the Company’s debt is expected to be reduced to $19,700,000. “We believe that the Noteholder’s agreement to convert a significant portion of its debt holdings to equity in the Company evidences its continued support and its belief in RYVYL’s core mission,” said Ben Errez, Chairman of RYVYL. “Once completed, we will have a stronger balance sheet, significantly increasing net shareholder equity and reducing outstanding debt by more than $60 million. It is our hope that by bringing net shareholder equity back into compliance with Nasdaq’s listing standards, we will be able to maintain the listing of our common ...