Neobank Dave Repurchases Convertible Note Owned by FTX Ventures

As was previously announced, Neobank Dave (Nasdaq: DAVE) has repurchased a convertible note that was held by FTX Ventures, the VC arm of FTX, initially funded with $2 billion. In a public statement Dave noted the original principle amount was $100 million with a purchase price discount of $71 million. The note was repurchased at a $35 million discount compared to the $105.5 million total liability. The transaction closed yesterday (January 29, 2024)

Dave adds that prior to the purchase it had $181 in liquidity (September 30, 2023) – mostly cash – as well as a $10 million facility. This will now be reduced by the $71 million.

Dave CEO and founder, Jason Wilk, called the repurchase an “exciting step forward” and a unique opportunity to create value for shareholders.

“We believe we are well capitalized and remain in a strong position to deliver on our growth and profitability objectives in the quarters ahead.”

Dave reported a net GAAP loss of $12.1 million in Q3 of 2023.  The company has yet to announce the date of its Q4 earnings release.

As a neobank, Dave partners with Evolve Bank & Trust to provide its banking services.

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