BOCA RATON, Fla., June 13, 2016 /PRNewswire/ -- FlexShopper, Inc. (OTCQB Symbol: FPAY, "FlexShopper"), an online provider of lease-to-own ("LTO") financing and payment solutions for consumers, announced today it has raised $20 million in equity capital.
The financing will enable FlexShopper to accelerate its growth in originating consumer leases through its LTO ecommerce marketplace (www.FlexShopper.com) and patent-pending LTO payment method.
FlexShopper CEO, Brad Bernstein, stated, "This equity financing bolsters the strength of our balance sheet and ensures that we are well positioned to execute our core mission of enabling lease-to-own consumers to shop online for what they want, where they want, while also providing retailers and e-retailers with multiple digital channels to increase their sales with lease-to-own consumers. We look forward to expanding our offerings to this market, which is a market we estimate to be in excess of $20 billion."
Mr. Bernstein added, "We are also proud to have been recently named by Internet Retailer as the fastest growing consumer electronics e-retailer in the United States for 2015. This is a testament to the exceptional efforts of our employees across all departments. As we continue to penetrate and expand the online lease-to-own market, we will continue to invest in our risk and technology functions for continued optimization of our order processing, marketing and risk strategies to enhance profitability."
FlexShopper offers consumers three distinct ways of obtaining brand name goods on an LTO basis: 1) At FlexShopper's LTO e-commerce marketplace, www.flexshopper.com, consumers can choose from over 80,000 different items including electronics, white goods, furniture, musical instruments, and equipment; 2) On third-party e-commerce sites featuring FlexShopper's LTO payment method, consumers can activate FlexShopper's payment button at checkout; and 3) Consumers can use FlexShopper's automated kiosk in certain retail locations. Regardless of channel, qualifying consumers can be approved in minutes for spending limits and may own their items after making 52 weekly payments or by exercising an early payment option.
FlexShopper raised $20 million in gross proceeds through the sale of $20 million of Series 2 Convertible Preferred Stock, which are convertible at a conversion price of $0.81 for a total of approximately 24.7 million shares of common stock.
For additional details regarding equity financing, please see the current report on Form 8-K filed by the Company with the Securities and Exchange Commission on June 13, 2016 which may be found at https://www.sec.gov/Archives/edgar/data/1397047/000121390016014168/f8k061016_flexshopperinc.htm .
Middlemarch Partners, a merchant bank focused on the financial services industry, served as the exclusive advisor to FlexShopper. K&L Gates LLP served as legal counsel to FlexShopper.
FlexShopper, LLC, a wholly owned subsidiary of FlexShopper, Inc. (FPAY), is a financial and technology company that provides brand name durable goods to consumers on a lease-to-own (LTO) basis through its ecommerce marketplace (www.FlexShopper.com) and patent pending LTO payment method. FlexShopper also provides LTO technology platforms to retailers and e-tailers to enter into transactions with consumers that want to obtain durable goods, but do not have sufficient cash or credit. FlexShopper also funds the LTO transactions by paying merchants for the goods and collecting from consumers under an LTO contract.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports of Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
SOURCE FlexShopper, Inc.