AppTech Payments Corp. (NASDAQ:APCX), a Delaware-based prepackaged software services company, has disclosed in a recent SEC filing that a previously issued warrant has been exercised, resulting in the issuance of additional shares. The event, which took place on August 29, 2024, followed an inducement transaction that led to a reduction in the exercise price of the warrant.
The warrant in question was part of a private placement offering that closed on July 11, 2024, where the company secured $1.1 million through a convertible debenture and a warrant to purchase up to 750,000 shares of its common stock. The original exercise price of the warrant was set at $1.16 per share but was later adjusted to $0.70 per share after an anti-dilutive event as per the terms of the inducement transaction.
On August 29, 2024, the warrant was exercised through a cashless transaction, which is an option available to the holder under certain conditions. This led to the issuance of 521,739 freely tradeable shares of AppTech Payments Corp.’s common stock. The shares from this exercise were registered under the Securities Act of 1933, as part of a registration statement that became effective on August 22, 2024.
AppTech Payments Corp. has its headquarters in Carlsbad, California, and operates under the ticker symbol APCX on the Nasdaq Capital Market. The company has undergone several name changes in its history, previously known as AppTech Corp., Natural Nutrition Inc., and CSI Business Finance, Inc.
In other recent news, AppTech Payments Corp. has secured fresh capital through a strategic agreement with a warrant holder. The deal involves exercising existing warrants for about 1.67 million shares at a reduced price, generating roughly $1.17 million in gross proceeds. This move is expected to provide additional working capital and support for general corporate purposes.
In addition, AppTech Payments has announced a strategic partnership with FISB Solutions to modernize core banking systems for community banks. Furthermore, it recently priced a public offering of 2 million shares at $1.00 each, managed by EF Hutton LLC, to raise $2 million before deductions.
Lastly, the company has completed the pilot program of its Banking-as-a-Service platform, marking its transition towards the commercial launch of InstaCash. These are all recent developments within the company.
InvestingPro Insights
As investors digest the recent SEC filing by AppTech Payments Corp. (NASDAQ:APCX), it's crucial to consider the company’s financial health and market performance. According to InvestingPro data, the company's market capitalization stands at a modest $20.65 million. Despite analysts expecting sales growth this year, the company's Price / Book ratio is quite high at 11.85, indicating that the stock may be trading at a premium compared to its book value as of the last twelve months ending Q2 2024.
InvestingPro Tips suggest that APCX trades with high price volatility and has not been profitable over the last twelve months. This is reflected in the company's adjusted P/E Ratio of -1.66, highlighting that it currently does not generate net earnings to support its share price. Moreover, the stock has experienced a significant price decline over the past year, with a 68.99% drop in its 1 Year Price Total Return as of the most recent data.
For investors considering the potential risks and rewards of investing in APCX, it may be beneficial to explore the full range of InvestingPro Tips, which include several additional insights on the company's financial position and stock performance. Visit InvestingPro for a comprehensive list of tips to guide your investment strategy.
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