Dave Announces Repurchase Of $100M Convertible Note from FTX Ventures Ltd For A Discounted Purchase Price Of $71M
Portfolio Pulse from Benzinga Newsdesk
Dave Inc. (NASDAQ:DAVE) has agreed to repurchase a $100M convertible note from FTX Ventures Ltd. for $71M. The transaction is subject to approval by the Bankruptcy Court due to FTX's bankruptcy proceedings, with a hearing set for January 25, 2024. Dave's CEO believes this is a strategic capital allocation that supports their growth plan without needing extra equity capital.

January 05, 2024 | 2:01 pm
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Dave Inc. is repurchasing a convertible note from FTX Ventures at a discount, which could strengthen its balance sheet and support growth without additional equity dilution.
The repurchase of the convertible note at a discount is likely to be viewed positively by investors as it may improve Dave's financial flexibility and reduce potential dilution from the convertible note. The transaction is also a sign of management's confidence in the company's capital position and growth plan. However, the deal is contingent on court approval, which adds a layer of uncertainty.
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