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Saturday, Sep 23, 2023

Srax Cements $9.5M Revolving Facility

Fintech company also launches a portfolio-tracking website.

Fintech data company Srax Inc. capped off August with the announcement that it entered a revolving credit facility and launched a webpage that gives investors the ability to track the current value of the company’s marketable securities portfolio.

The revolving credit facility allows the company to draw up to $9.5 million in the next two years. The borrowing base was determined by Srax’s cash and up to 70% of the market value of the marketable securities held by the company, not to exceed $9.5 million.

Repayment of the facility will be based on a percentage of the sales of the marketable securities from customers of Sequire, the company’s investor intelligence and communications platform and main source of income.Sequire gives companies access to data on investors’ behaviors and trends that can then be used to engage current and potential investors. 

The amount of the credit facility that is outstanding is convertible into common shares at $15 per share. Srax must also follow a requirement to repurchase a minimum of $1 million worth of its stock under $5 per share.

“This new credit facility, from a long-term Srax investor, allows us to better manage cash flow from the sales of our marketable securities and gives us the tools needed to optimize the value of these positions,” Christopher Miglino, Srax’s chief executive, said in a statement.

Antonio Pequeño IV
Antonio Pequeño IV
Antonio “Tony” Pequeño IV is a reporter covering health care, finance and law for the San Fernando Valley Business Journal. He specializes in reporting on some of the biggest names in the Valley’s biotechnology sector. In addition to his work with the Business Journal, Tony has reported with BuzzFeed News on the unsupervised use of Clearview AI, a controversial facial recognition technology. Tony, who also conducts freelance reporting, graduated from the USC’s Master of Science in Journalism program in 2021. He is in his fifth year as a journalist as of 2021.

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