EzFill Holdings Inc. (NASDAQ:EZFL), a company categorized under the retail-auto dealers and gasoline stations sector, has entered into a promissory note with Alcourt LLC for $1 million to bolster its working capital, including equipment purchases.
According to InvestingPro data, the company, currently valued at $23.91 million, has been experiencing significant revenue growth of 19.14% but faces challenges with cash burn. InvestingPro analysis suggests the stock may be slightly undervalued at current levels. This agreement, dated January 15, 2025, carries a 15% annual interest rate and includes an original issue discount of $50,000.
The note is due on April 15, 2025, unless extended or accelerated according to its terms. Should EzFill fail to repay by the maturity date, it must issue shares worth $500,000 to Alcourt, with each share priced at the greater of the closing price on the maturity date or $1.00. If the company's stock is trading below $1.00, Alcourt has the option to receive the extension fee in cash. Following the payment, the maturity date will extend to July 15, 2025. However, the issuance of shares requires prior shareholder approval, which the company is actively seeking.
Additionally, EzFill Holdings has amended its December 26, 2024, promissory note with Gad International Ltd., clarifying that no shares can be issued without shareholder approval. The amendment emphasizes that the company has initiated the process to obtain such approval, and will issue shares upon completion.
On January 15, 2025, EzFill Holdings received stockholder consents related to the January 15 Note and potential share issuance as part of the extension fee, the December 26 Note and its amendment, and possible issuance of $5 million worth of shares to Gad International Ltd. if the December 26 Note is not repaid by February 23, 2025. These consents also apply to certain promissory notes with NextNRG Holding Corp. and any associated share issuance.
These shareholder consents comply with Nasdaq Listing Rules 5635(a) and 5635(d), which mandate stockholder approval for issuances that could exceed 20% of the company's outstanding common stock.
InvestingPro data shows the company maintains a healthy current ratio of 1.94, indicating sufficient liquid assets to meet short-term obligations, despite operating with moderate debt levels. For deeper insights into EzFill's financial health and 11 additional ProTips, investors can explore InvestingPro's comprehensive analysis tools.
In other recent news, EzFill Holdings Inc. has confirmed the re-election of its board of directors and the ratification of M&K CPAs, PLLC as its independent registered public accounting firm. Following this, EzFill Holdings has secured substantial funding through a series of loans and promissory notes from NextNRG Holding Corp, including a $580,000 loan, $990,000 in promissory notes, and a $181,500 loan. The company has also announced its plans to acquire the fueling division of Yoshi, Inc., a strategic move expected to enhance its national expansion efforts.
EzFill Holdings has revised its agreement with NextNRG Holding Corp. shareholders, adjusting the total shares to be issued from 40 million to 100 million as part of its planned acquisition of NextNRG. The company has also regained compliance with Nasdaq's equity rule, converting approximately $13.5 million of its debt into equity through agreements with NextNRG Holding Corp and AJB Capital Investments.
However, EzFill Holdings has been notified by The Nasdaq Stock Market LLC that it no longer meets Nasdaq's continued listing requirements due to the company's failure to hold its annual stockholders' meeting within the stipulated timeframe. The Miami-based company has 45 days to submit a plan to regain compliance.
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