CACHET FINANCIAL SOLUTIONS, INC. (NASDAQ:CAFN) Files An 8-K Other Events
Item 8.01 Other Events.
As previously disclosed by Cachet Financial Solutions, Inc. (the
Company) on Current Reports on Form 8-K filed on March 13, 2017
and March 21, 2017, (i) on March 9, 2017, the Company effected a
reverse split of its outstanding shares of common stock, par
value $0.0001 per share (Common Stock), at a ratio of 1:1.5 (the
Reverse Split), (ii) on March 10, 2017, the Companys Common Stock
began trading on the Nasdaq Capital Market under the symbol CAFN,
(iii) on March 10, 2017, the Company priced an underwritten
public offering of 2,333,334 shares of its Common Stock at a
public offering price of $4.50 share (the Offering), (iv)
simultaneously with the closing of the Offering, certain
noteholders converted $3,040,000 of the aggregate principal
balance of certain convertible notes into 844,446 shares of the
Companys Common Stock, (v) upon the closing of the Offering, the
Company issued 1,440,310 shares of restricted Common Stock to
holders of the Companys Series C Convertible Preferred Stock upon
the automatic conversion of the Series C Convertible Preferred
Stock, (vi) on March 21, 2017, the Company issued 2,799,718
shares of restricted Common Stock upon the Companys exercise of
its option to cause the mandatory conversion of approximately
$10.1 million of the aggregate principal balance of certain
convertible notes, and (vii) immediately after the closing of the
Offering and the conversions mentioned above, the Companys
long-term indebtedness decreased to approximately $1.0 million on
a Pro Forma basis as of December 31, 2016 and the Companys total
shareholders equity (deficit) increased from approximately $(15.3
million) to approximately $8.8 million on a Pro Forma basis as of
December 31, 2016.
As a result of the events mentioned above, the Companys
independent registered public accounting firm, Lurie, LLP, has
reissued its report in connection with the Companys consolidated
financial statements for the fiscal years ended December 31, 2016
and 2015, to eliminate the going concern paragraph. Attached
hereto as Exhibit 99.1 are revised consolidated financial
statements for the fiscal years ended December 31, 2016 and 2015,
which includes the reissued report by Lurie, LLP and reflects the
Reverse Stock Split and the removal of the discussion in Note 1
related to the doubt about the Companys ability to continue as a
going concern.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| 23.1 |
Consent of Lurie, LLP, Independent Registered Public Accounting Firm |
| 99.1 |
Cachet Financial Solutions, Inc. Audited Consolidated Financial Statements for the Fiscal Years Ended December 31, 2016 and 2015 |
About CACHET FINANCIAL SOLUTIONS, INC. (NASDAQ:CAFN)
Cachet Financial Solutions, Inc. is a technology solutions and services provider to the financial services industry. The Company’s solutions and services enable its clients, such as banks, credit unions and alternative financial services providers (AFS) to offer their customers remote deposit capture (RDC) and prepaid mobile money technologies and related services. It offers RDC products for businesses and consumers; mobile money management products for consumers, and training and support services for its financial services industry customers. The RDC products are offered to banks and credit unions in the United States, Canada and Latin America. Its mobile money management products are offered to traditional financial institutions (FIs), as well as AFS in the United States, Canada and Latin America. These FIs and AFS providers include banks, credit unions, prepaid card issuers, check cashers and payday lenders. CACHET FINANCIAL SOLUTIONS, INC. (NASDAQ:CAFN) Recent Trading Information
CACHET FINANCIAL SOLUTIONS, INC. (NASDAQ:CAFN) closed its last trading session up +0.04 at 4.24 with 44,218 shares trading hands.
