Dave Inc. (Nasdaq: DAVE), which claims to be one of the nation’s leading neobanks, recently announced it has reached an agreement with FTX Ventures Ltd. in order “to purchase a convertible promissory note that it previously issued to FTX in the original principal amount of $100 million, for a discounted purchase price of $71 million.”
FTX has filed a motion in its bankruptcy proceeding “seeking approval of the agreement, which is scheduled to be heard on January 25, 2024.”
The closing of the transaction is “conditioned upon the Bankruptcy Court’s approval of the agreement and upon FTX not entering into an alternative transaction for the sale of the convertible note.”
Jason Wilk, founder and CEO of Dave, said:
“We believe the transaction represents a compelling capital allocation opportunity for Dave. Accounting for the payment, we remain confident that we have sufficient capital to execute on our growth plan without the need to raise additional equity capital.”
As covered, Dave claims that it serves as “a leading U.S. neobank and fintech pioneer serving millions of everyday Americans.”
Dave says that it “uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents.”
Dave says it partners “with Evolve Bank & Trust, a FDIC member.”
As covered towards the end of last year, Figure Technologies, along with former NYSE Executive Tom Farley and VC Proof Group, are planning to acquire what’s left of FTX, according to a report by WSJ.com. FTX was once valued at over $30 billion.
Figure, founded by top Fintech entrepreneur Mike Cagney, operates one of the more successful enterprise blockchain platforms. Farley currently runs Bullish, a small crypto exchange that is currently ranked #81 by CoinMarketCap. Bullish does not provide services in the United States and is licensed in Gibraltar – a crypto-friendly jurisdiction. Bullish aims to be an institutional-grade platform that prioritizes compliance, audit, and governance frameworks.
The report indicates that around 70 different parties kicked the tires of FTX, with the group of possible acquirers now down to three suitors. At one time, FTX was one of the largest crypto exchanges in the world – until it collapsed into bankruptcy due to massive fraud by founder and former CEO Sam Bankman-Fried, who will now be spending much of his life in prison for his crimes.