SurgePays, a wireless and FinTech firm delivering mobile and financial services to underserved communities, has announced a $7m senior secured convertible note agreement with a current institutional shareholder.
The financing comprises $6m in cash and a buyback of 333,333 shares from the investor’s existing equity holding. The note will mature two years from issuance and becomes convertible after eight months at a fixed price of $4 per share, representing a premium on the company’s closing price as of 13 May 2025. SurgePays retains the option to repay the note early with a 2% premium plus accrued interest.
SurgePays operates as both a mobile virtual network operator (MVNO) and a mobile virtual network enabler (MVNE), providing infrastructure and services to other wireless providers. The company also offers a proprietary point-of-sale (POS) platform used in thousands of retail outlets across the US to facilitate mobile activations, top-ups, and digital financial services.
The company intends to use the new funding to accelerate the national rollout of LinkUp Mobile and expand its MVNE wholesale operations. These efforts follow its recent integration and official launch with AT&T on 1 April 2025.
SurgePays CEO Brian Cox said, “We appreciate the continued support from one of our largest shareholders. 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.”
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