SurgePays Secures $7 Million Convertible Note to Accelerate Mobile Network Expansion

Telecommunications and fintech company SurgePays has secured a $7 million senior secured convertible note from an existing institutional shareholder, positioning itself for substantial growth in the mobile connectivity market. The financial arrangement provides $6 million in cash and includes a repurchase of 333,333 shares, with the two-year note convertible into common stock at $4.00 per share.

The strategic investment will primarily fund two critical initiatives: the national launch of LinkUp Mobile and the expansion of SurgePays' mobile virtual network enabler (MVNE) wholesale platform. This comes on the heels of the company's April 1 integration with AT&T, which significantly enhances its network infrastructure and market reach.

Management is extremely optimistic about the company's trajectory, projecting over $200 million in revenue and positive cash flow from operations by the end of 2025. The convertible note includes a prepayment option at a 2% premium, providing additional financial flexibility.

SurgePays differentiates itself by focusing on delivering mobile connectivity and financial services to underserved communities. The company operates both as a mobile virtual network operator and a mobile virtual network enabler, offering comprehensive backend infrastructure including provisioning and billing services for wireless providers.

The company's proprietary point-of-sale platform, currently utilized in thousands of retail locations nationwide, enables SIM activations, top-ups, and digital financial services. This infrastructure positions SurgePays to scale effectively across retail and wholesale wireless channels.

The recent financial injection represents a significant milestone for SurgePays, potentially accelerating its growth strategy and expanding its market presence in the competitive telecommunications sector. By targeting underserved markets and offering comprehensive mobile and financial solutions, the company aims to create meaningful connectivity opportunities for communities traditionally overlooked by larger telecommunications providers.