Wall Street Signals: SurgePays Announces Pricing of Upsized $19.8 Million Public Offering, Uplisting to Nasdaq and Reverse Stock Split

SurgePays Announces Pricing of Upsized $19.8 Million Public Offering, Uplisting to Nasdaq and Reverse Stock Split

SurgePays, Inc. (OTCQB: SURG) (“SurgePays” or the “Company”), a blockchain fintech company building a next-generation supply chain network that offers wholesale goods and financial services for the underbanked more cost-efficiently than traditional distribution models, today announced the pricing of its underwritten public offering of 4,600,000 units at a price to the public of $4.30 per unit. Each unit issued in the offering consists of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $4.73 and an expiration date of three years from the date of issuance. The common stock and warrants are immediately separable and will be issued separately. The common stock and warrants are expected to begin trading on the Nasdaq Capital Market on November 2, 2021, under the symbols “SURG” and “SURGW,” respectively. SurgePays expects to receive gross proceeds of $19.78 million, before deducting underwriting discounts and commissions and other estimated offering expenses. In connection with the offering, the Company will effectuate a reverse split of its issued and outstanding common stock at a ratio of 1-for-50. The reverse stock split is expected to be effective at 12:01 a.m., Eastern Time, on Tuesday, November 2, 2021. The share numbers and pricing information in this release are adjusted to reflect the impact of the reverse stock split. The new CUSIP number for the common stock following the reverse split is 86882L204.

SurgePays has granted the underwriters a 45-day option to purchase up to an additional 690,000 shares of common stock and/or an additional 690,000 warrants at the public offering price to cover over-allotments if any. The offering is expected to close on November 4, 2021, subject to customary closing conditions.

Maxim Group LLC is acting as the sole book-running manager for the offering.

The offering is being conducted pursuant to the Company’s registration statement on Form S-1 (File No. 333-233726), as amended, previously filed with, and subsequently declared effective by, the Securities and Exchange Commission (“SEC”) and a related registration statement, filed on November 1, 2021, pursuant to Rule 462(b) (File No. 333-260672) and which was automatically effective upon filing. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. Electronic copies of the final prospectus relating to this offering, when available, may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at (212) 895-3745. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About SurgePays, Inc.

SurgePays, Inc. utilizes its blockchain software platform to offer a comprehensive suite of prepaid, financial services for the underbanked, and top-selling wholesale products to independently owned convenience stores, mini-marts, tiendas, and bodegas more cost-efficiently than existing wholesale distribution models. Please visit www.SurgePays.com for more information.


Company Contact:
Tony Evers CPA, CIA
Chief Financial Officer