Dave CEO Jason Wilk expressed his excitement over the strategic partnership with FTX US.
Dave (NASDAQ: DAVE), a California-based software company, has announced a partnership with FTX US, a US-regulated cryptocurrency exchange. The partnership is in line with the mission of both institutions. Dave Inc aims to create banking opportunities that advance America’s collective potential. On the other hand, FTX US seeks to expand the crypto ecosystem by offering traders a platform that inspires loyalty.
The partnership involved a $100 million investment from FTX US. The banking app and FTX US are looking to explore crypto payment on the Dave App. While the investment fuels Dave Inc’s growth and future initiatives, FTX US will serve as the exclusive partner for any crypto tendering on the Dave platform, improving user experience.
Highlight of FTX US $100 Million Investment
The $100 million investment term was initiated under an unsecured convertible note. Typically, unsecured notes are convertible into preferred stock at a discounted rate. The initial convertible price of the note is $10.00 per share of Common Stock and can be adjusted. During the note’s term, it will be convertible into Dave Class A Common Stock at $0.0001 per share at the option of FTX US.
At FTX US’s option, the interest which may be paid in deed or in cash will bear a semi-annual compound rate of 3.00% per year. Two years after the issuance of the note, Dave will not pay FTX the sum of the outstanding principal amount of the note, including all unpaid interest and expenses incurred by FTX Ventures.
Payment of the Redemption Price before the maturity date will constitute a redemption of the note in full. If the closing price of the common stock is equal to or more than 175% of the conversion price, within 20 consecutive trading days, the note will be convertible into shares of common stock. That is, after twenty-four months of the issuance date, until the maturity date, at the option of Dave Inc. The conversion will be upon delivery of a written notice to FTX US electing to convert the note. Alternatively, on all or any portion of the outstanding principal amount of the note. At any time before the maturity date, Dave may, in its sole discretion and upon delivery of a written notice to the FTX US electing, prepay the note without penalty by paying the FTX US 100% of the Redemption Price.
Comments on the Dave-FTX Strategic Partnership
Dave CEO Jason Wilk expressed his excitement over the strategic partnership with FTX US. In his opinion, blockchain technology can integrate the global financial scope. Wilk said the collaboration with FTX US would enable the company to step into the digital asset space. He added that the deal would allow Dave to experience additional growth opportunities and enhance its member experience. He specifically said the team is “looking forward” to working with the crypto company.
Furthermore, FTX US President Brett Harrisson also said:
“We consistently look to align with companies that share our vision, have unique and disruptive business models, and can help drive widespread adoption of digital assets. Dave is a great fit as they check all three boxes. We see significant growth opportunities ahead of both of our companies and are excited to be working with Dave.”
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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