SurgePays announces pricing of upsized $19.8m public offering

By Edlyn Cardoza

SurgePays, Inc., 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, recently 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.

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 sole book-running manager for the offering.

The offering is being conducted pursuant to the Company’s registration statement on Form S-1, as amended, previously filed with, and subsequently declared effective by, the Securities and Exchange Commission and a related registration statement, filed on November 1, 2021, pursuant to Rule 462(b) 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. Electronic copies of the final prospectus relating to this offering, when available, may be obtained from Maxim Group LLC.