FDCTech Strengthens Balance Sheet as Noteholder Converts Debt Into Shares

FDCTech, Inc. (FDCTech), a fintech company with a full suite of forex technology and business solutions, announced that FRH group, holder of the affiliate convertible notes, with the face value in the principal $1,000,000 issued between date February 22, 2016, and April 24, 2017, totaling $1,256,908 at a coupon of 6% had converted their debt into 12,569,080 common shares of the company under the terms of the convertible notes, effective February 22, 2021. FRH group provided the seed capital to FDCTech beginning February 2016.

With the conversion, FDCTech removed unnecessary limitations to secure the growth funding at an optimum cost of capital. Further, FDCTech reduced its total liabilities from $1,737,254 to $480,346, a decrease of 72.35% as of the beginning of fiscal 2021. FDCTech needed to improve its net asset position to prepare for a potential uplist and timely close and integrate the acquisition of Genesis Financial, Inc. (Genesis).

"We are extremely thankful to FRH Group for being a long-term supporter and trusted partner of the Company," said FDC Founder and CEO Mitchell M. Eaglstein. "Although there are still several barriers to our goal to up-list to a larger exchange; by eliminating secured debt, we have arguably taken the first concrete step in this process. Coupled with the anticipated completion of Genesis acquisition and continuation of positive market conditions, we believe the combined Company financials will be strong for a future uplist and growth."