MINNEAPOLIS, Jan. 17, 2020 /PRNewswire/ -- Today, Sezzle Inc. (ASX: SZL), the US-based alternative payments leader, is pleased to announce that as of 16 January 2020 (US time) the State of California Department of Business Oversight ('DBO') has formally approved Sezzle's application for a lending license in the State of California.
This approval ensures that Sezzle is able to continue to operate seamlessly in the State of California, further solidifying the company's position as the leading US-based installment payment platform.
Charlie Youakim, Sezzle's Executive Chairman and CEO, made the following statement regarding the State of California Department of Business Oversight's approval of Sezzle's lending license:
"We are delighted with the result we achieved today in California. We believe the speed with which we were able to attain this license speaks to the positive relationship that we have with the DBO. We appreciate the DBO's help with getting to a resolution, and we're excited to work with them in the future as we continue to expand our consumer-friendly service to more California residents."
Prior to receiving the lending license, Sezzle was operating in California under a retail installment structure whereby retailers initiated the installment loan and transferred the loan to Sezzle to service. The DBO lending license approval allows for a seamless transition of services from this prior structure to the direct lending structure Sezzle is operating under currently.
About Sezzle Inc. Sezzle is a rapidly growing fintech company whose mission is to financially empower the next generation. Sezzle's payment platform increases purchasing power for consumers by offering interest-free installment plans at online stores. This increase in purchasing power for consumers leads to increased sales and basket sizes for the more than 7,500 active merchants at Sept 30 2019 that offer Sezzle in the United States and Canada. For more information visit sezzle.com
Sezzle's CDIs are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers of securities which are made outside the US. Accordingly, the CDIs, have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are 'restricted securities' under Rule 144 of the Securities Act. This means that you are unable to sell the CDIs into the US or to a US person who is not a QIB for the foreseeable future except in very limited circumstances until after the end of the restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a FOR Financial Product designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons excluding QIBs. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person who is not a QIB. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.