SurgePays, a wireless and fintech company focused on underserved communities, has secured a $7 million senior secured convertible note that could significantly boost its mobile connectivity and financial services platform. The two-year note, obtained from an existing institutional shareholder, provides $6 million in immediate cash and includes a unique share repurchase arrangement.
The convertible note offers conversion to common stock at $4.00 per share, which represents a premium to the current market price. This financial instrument includes a prepayment option at a 2% premium, providing flexibility for the company's strategic planning.
The funding comes at a critical time for SurgePays, as the company prepares to launch LinkUp Mobile nationally and leverage its recent integration with AT&T's network on April 1. Management is projecting aggressive growth, with an anticipated revenue exceeding $200 million and positive operational cash flow by the end of 2025.
As both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE), SurgePays is positioning itself to scale across retail and wholesale wireless channels. The company's proprietary point-of-sale platform, already utilized in thousands of retail locations, enables SIM activations, top-ups, and digital financial services.
This strategic financial move could represent a significant milestone for SurgePays in expanding mobile connectivity and financial services to underserved communities, potentially disrupting traditional wireless and fintech markets.
