BARTLETT, Tenn. - SurgePays, Inc. (NASDAQ:SURG), a technology company serving underbanked and underserved communities, has announced the completion of its underwritten public stock offering, which closed today. The offering included 2,678,571 shares of common stock priced at $5.60 each, resulting in gross proceeds of approximately $15 million.
This capital raise is before accounting for underwriting discounts, commissions, and other estimated offering expenses that SurgePays will bear. Titan Partners Group, a division of American Capital Partners, served as the sole book-running manager for the offering.
The offering was conducted in accordance with a shelf registration statement, which the Securities and Exchange Commission (SEC) declared effective on November 3, 2023. The terms of the offering were detailed in a final prospectus supplement and accompanying prospectus filed with the SEC on January 19, 2024.
SurgePays, known for its technology platform that enables convenience store clerks to offer various prepaid wireless and financial products, operates in over 8,000 convenience stores. The company's prepaid wireless subsidiaries provide services to over 250,000 subscribers across the nation.
InvestingPro Insights
In light of SurgePays, Inc.'s recent public stock offering, investors might find the following InvestingPro Insights particularly relevant. The company holds a market capitalization of approximately $105.89 million, with an attractive P/E ratio of 4.34, reflecting potential undervaluation compared to earnings. The adjusted P/E ratio for the last twelve months as of Q3 2023 stands at 5.14, still suggesting affordability in the stock's pricing.
Significantly, SurgePays has demonstrated robust revenue growth, boasting a 41.8% increase in the last twelve months as of Q3 2023. Despite this, investors should note that the company has shown a quarterly revenue decline of -5.56% in Q3 2023, which could indicate some short-term challenges. However, with gross profit margins at 24.76%, the company maintains a reasonable level of profitability.
InvestingPro Tips highlight that SurgePays has more cash than debt on its balance sheet and is expected to see net income growth this year. Furthermore, analysts have revised their earnings upwards for the upcoming period, underlining a positive outlook. With a strong return over the last three months at 53.72%, the company's stock price movements do showcase volatility, yet they also reflect a capacity for significant gains.
For those considering a deeper dive into SurgePays' financial health and future prospects, InvestingPro offers additional insights. With a special New Year sale, investors can now subscribe to InvestingPro at a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription. There are 13 additional InvestingPro Tips available for SurgePays, which can provide a comprehensive analysis for informed investment decisions.
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