SurgePays Secures $7M Convertible Note to Accelerate Mobile Platform Expansion
SurgePays has obtained a $7 million convertible note to support its national LinkUp Mobile launch and wholesale platform growth, with management projecting over $200 million in revenue by 2025.
Wireless and fintech company SurgePays has secured a $7 million senior secured convertible note from an existing institutional shareholder, marking a strategic financial move to support its nationwide mobile connectivity expansion. The agreement provides $6 million in cash and involves a repurchase of 333,333 shares.
The two-year note, convertible into common stock at $4.00 per share, includes a prepayment option at a 2% premium. This financing comes on the heels of SurgePays' April 1 integration with AT&T and is designed to fuel the national launch of LinkUp Mobile and grow its mobile virtual network enabler (MVNE) wholesale platform.
Management's aggressive growth strategy includes projections of over $200 million in revenue and positive cash flow from operations by the end of 2025. The company's unique positioning in both retail and wholesale wireless channels provides a potentially significant opportunity for expansion in underserved markets.
By leveraging its proprietary point-of-sale platform, which is currently used in thousands of retail locations nationwide, SurgePays aims to provide mobile connectivity and financial services to communities traditionally overlooked by larger telecommunications providers.