SurgePays Secures $7 Million to Propel Growth and Expansion in the Wireless Sector

SurgePays Secures $7 Million Debt Financing

In an exciting development for the wireless and point-of-sale technology sector, SurgePays, Inc. (Nasdaq: SURG) has announced the successful agreement of a $7 million senior secured convertible note. This strategic financing derives from an existing institutional shareholder, marking a significant step in the company's mission to accelerate growth and expand its services nationwide.

Details of the Financing

The $7 million Note features a fixed conversion price of $4.00 per share, a premium compared to the market price as of May 13, 2025. The Note has a maturity period of two years, allowing SurgePays ample time to leverage the financing. Notably, the majority of the financing – $6 million – has been provided in cash, alongside the repurchase of 333,333 shares from the shareholder's current equity stake. SurgePays holds the option to prepay the Note, either in whole or in part, with a 2% premium over the principal amount and accrued interest, provided they give a five-day advance notice.

Brian Cox, the Chairman and CEO of SurgePays, expressed gratitude towards the institutional shareholder for their sustained support. He stated, "This investment deepens our partnership and affirms confidence in our vision, strategy, and financial outlook over the next 12 months. It also fortifies our balance sheet and gives us the flexibility to accelerate execution of our national growth strategy."

Utilization of Funds

The proceeds from this financing are earmarked for the aggressive nationwide launch of SurgePays’ mobile service, LinkUp Mobile, as well as an expansion of its Mobile Virtual Network Enabler (MVNE) wholesale business. The company has experienced a successful integration and official launch with AT&T since April 1, 2025. In light of these advancements, management anticipates revenues exceeding $200 million within the next 12 months and aims to establish positive cash flow from operations by the end of 2025. It's noteworthy that these projections are based exclusively on the monetization of its existing Mobile Virtual Network Operator (MVNO) and point-of-sale (POS) platforms.

Future Outlook

As SurgePays gears up for this significant expansion, they are poised to offer innovative connectivity and financial services to underserved markets. Being unique in their operational model, they function as both an MVNO and MVNE, providing a comprehensive suite of services that includes backend support for other wireless providers.

The company's proprietary point-of-sale platform is already facilitating SIM activations and digital financial services in thousands of retail outlets across the nation. SurgePays is committed to scaling its operations efficiently within both retail and wholesale wireless channels. Cox emphasized that the new funding will enhance their ability to achieve both financial and market performance targets, ultimately extending much-needed connectivity to underserved communities.

Closing Thoughts

In a rapidly evolving industry where access to mobile connectivity can significantly impact economic opportunities, SurgePays stands out by addressing the needs of underserved communities while ensuring robust financial health. As they embark on this ambitious growth journey, stakeholders and investors alike will be monitoring their progress with keen interest, vowing to support their initiatives long-term. For more information about SurgePays and its innovative offerings, visit www.SurgePays.com.