JetPay Corporation Announces Redemption of $10 Million of Convertible Notes
January 12 2015 - 8:59AM
Business Wire
JetPay® Corporation (“JetPay” or the “Company”) (NASDAQ:
“JTPY”), a leading provider of debit and credit card processing,
payroll, and prepaid card services, today announced that on
December 31, 2014 it had redeemed the $10 million of Secured
Convertible Notes (the “Notes”) that were originated when the
Company closed its initial business combinations on December 28,
2012. These Notes carried an annual interest rate of 12%.
The Company obtained the funding for the redemption of the Notes
through the issuance of 33,333 shares of Series A Preferred, for an
aggregate of $10.0 million, to Flexpoint Fund II, L.P.
(“Flexpoint”) pursuant to an existing Securities Purchase Agreement
detailed in the Company’s Current Report on Form 8-K filed on
August 23, 2013. Details on the redemption of the Notes and the
Preferred stock issuance are available within the Company’s Form
8-K filed on January 5, 2015.
Bipin C. Shah, Chairman and CEO of JetPay Corporation, stated:
“This is another important step in the development of JetPay
Corporation.” Mr. Shah further commented, “These transactions free
up $1.2 million in annual cash flow, simplify our income statement,
strengthen our balance sheet, and provide additional capital for
growth. Combined with our recent acquisition of ACI Merchant
Systems in November, we believe we are poised to continue our
strategic growth plans as we move into 2015.”
About JetPay Corporation
JetPay Corporation, based in Berwyn, PA, is a leading provider
of vertically integrated solutions for businesses including card
acceptance, processing, payroll, payroll tax filing and other
financial transactions. JetPay provides a one vendor solution for
payment services, debit and credit card processing, ACH services,
and payroll and tax processing needs of businesses throughout the
United States. The Company also offers low-cost payment choices for
the employees of these businesses to replace costly alternatives.
The Company’s vertically aligned services provide customers with
convenience and increased revenues by lowering payments-related
costs and by designing innovative, customized solutions for
Internet, mobile, and cloud-based payments. Please visit
www.jetpay.com for more information on what JetPay has to offer or
call 866-4JetPay (866-453-8729).
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. JetPay’s actual
results may differ from its expectations, estimates and projections
and consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside JetPay’s control and are difficult to predict. Factors that
may cause such differences include, but are not limited to, those
described under the heading “Risk Factors” in the Company’s Annual
Report filed with the Securities and Exchange Commission (“SEC”) on
Form 10-K for the fiscal year ended December 31, 2013, the
Company’s Quarterly Reports on Forms 10-Q and the Company’s Current
Reports on Form 8-K.
JetPay cautions that the foregoing list of factors is not
exclusive. Additional information concerning these and other risk
factors is contained in JetPay’s most recent filings with the
Securities and Exchange Commission. All subsequent written and oral
forward- looking statements concerning JetPay or other matters and
attributable to JetPay or any person acting on its behalf, are
expressly qualified in their entirety by the cautionary statements
above. JetPay cautions readers not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
JetPay does not undertake or accept any obligation or undertaking
to release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change
in events, conditions or circumstances on which any such statement
is based.
JetPay CorporationPeter Davidson, 484-324-7980Vice
ChairmanPeter.davidson@jetpaycorp.comorJoan Wurzel,
610-747-0256Senior Vice President and Director of Corporate
Communicationsjoan.wurzel@jetpaycorp.com
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