SurgePays Provides Shareholder Update
January 12 2023 - 9:14AM
SurgePays, Inc. (Nasdaq: SURG) ("SurgePays" or the "Company"), a
technology and telecommunications company focused on the
underbanked and underserved provides this shareholder update.
"It’s extremely exciting to finish 2022, a
difficult market year, as a top 10 performing stock out of almost
3,700 companies on the Nasdaq stock exchange. I am proud of our
accomplishments with no dilutive capital raises. Our top goals for
2022 was to maximize growth opportunities while also improving our
balance sheet and cap table. I believe we achieved these goals by
focusing on scaling our business within our financial resources and
leveraging our expertise in underbanked markets in preparation for
what we believe can be a transformational 2023," stated Brian Cox,
Chief Executive Officer of SurgePays, Inc.
"At the beginning of the year, I made a
commitment to our shareholders to maximize telecom subscriber
growth through reinvesting cash flow without accessing diluting
capital. While this commitment resulted in throttling sales to
significantly less than our abilities and potential due to running
out of devices several times, I believe the results speak for
themselves. Our team continues to focus on scaling our business
with the goal of growing both revenue and shareholder value by
holding firm with a measured approach. We will continue to focus on
refining operations and improving unit margins without increasing
operational cash burn. I think this past year is indicative of
viability of our plan as we were able to execute in difficult
market conditions.”
Mr. Cox continued: “We see opportunity for
expansion in our market, and I am pleased to report that we are
just hitting stride. I have previously stated that our next
milestone is 500,000 subscribers, and after that 1 million. Once we
hit 500,000 subscribers, we anticipate being able to offer our
subscribers additional products, including the launch of our
prepaid wireless brand and other financial services for the
underbanked. It is important to remember that each subscriber
represents a household with significant upsell revenue
opportunities for the Company.
“In November, we announced a $25 million
installment credit facility that gave us the ability to increase
sales operations and improve our supply chain. Working through
facility and procurement partners, SurgePays and its partners
currently has orders for over 300,000 devices (tablets and
smartphones), with currently expected delivery in the first quarter
of 2023. These expanded resources enable us to launch in-store
Affordable Connectivity Program (ACP) enrollments as well as
increase internet and field enrollment programs. SurgePays also
offers these services on smartphones, potentially broadening
overall market penetration.”
“We also made some great additions to our Board
of Directors in the fourth quarter of 2022, which, in part, led to
our decision to delay our annual meeting of shareholders, which is
expected to be held in March 2023 in Memphis.
“One of the most significant additions to our
team in 2022 was adding Jeremy Gies as President of SurgePays
Fintech,” Added Mr. Cox. “Jeremy is a 25 year veteran of telecom,
fintech and prepaid channels who is laser focused on expanding our
network and increasing revenue. My directive to Jeremy was simple:
more stores, more sales per store and higher margins per sale. I
want to call special attention to this as his experience and skill
set expands our capacity to grow and execute on long term growth
initiatives using ACP as a unique catalyst to get our foot in the
door with 10,000s of stores nationwide. Almost every convenient
store in the country accepts SNAP/EBT which is a qualifier for
subsidized internet access. In 20 years of business, I have never
had a more enticing offering to independent and chain store owners.
SurgePays Fintech is positioned to be one of our most impressive
growth metrics of 2023.
“I am looking forward to continuing our same
growth trajectory using disciplined decision making focused on what
we feel positions us for maximum shareholder value 3-5 years from
today. Thank you for your support and loyalty, this sets up to be
an extremely exciting year for SurgePays.”
Sincerely,
Brian Cox, CEO and Chairman
About SurgePays, Inc.
SurgePays, Inc. is a technology and
telecommunications company focused on the underbanked and
underserved communities. SurgePhone Wireless provides mobile
broadband to low-income consumers nationwide. SurgePays blockchain
fintech platform utilizes a suite of financial and prepaid products
to convert corner stores and bodegas into tech hubs for underbanked
neighborhoods. Please visit SurgePays.com for more information.
Cautionary Note Regarding
Forward-Looking Statements
This press release includes express or implied
statements that are not historical facts and are considered
forward-looking within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act. Forward-looking
statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance and may contain
projections of our future results of operations or of our financial
information or state other forward-looking information. In some
cases, you can identify forward-looking statements by the following
words: “may,” “will,” “could,” “would,” “should,” “expect,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“project,” “potential,” “continue,” “ongoing,” or the negative of
these terms or other comparable terminology, although not all
forward-looking statements contain these words.
Although we believe that the expectations
reflected in these forward-looking statements are reasonable, these
statements relate to future events or our future operational or
financial performance and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Furthermore, actual results may
differ materially from those described in the forward-looking
statements and will be affected by a variety of risks and factors
that are beyond our control, including, without limitation,
statements about our future financial performance, including our
revenue, cash flows, costs of revenue and operating expenses; our
anticipated growth; our predictions about our industry; the impact
of the COVID-19 pandemic on our business and our ability to
attract, retain and cross-sell to clients. The forward-looking
statements contained in this release are also subject to other
risks and uncertainties, including those more fully described in
our filings with the Securities and Exchange Commission (“SEC”),
including in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2021. The forward-looking statements in this
press release speak only as of the date on which the statements are
made. We undertake no obligation to update, and expressly disclaim
the obligation to update, any forward-looking statements made in
this press release to reflect events or circumstances after the
date of this press release or to reflect new information or the
occurrence of unanticipated events, except as required by law.
Investor RelationsBrian M. Prenoveau, CFAMZ
Group – MZ North AmericaSURG@mzgroup.us561 489 5315
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