Financial Application Dave to Repurchase $100M Equity from FTX
Dave, the renowned financial technology company, secures a $100 million convertible promissory note from FTX Ventures
Financial technology company Dave has reached a deal to acquire a convertible promissory note valued at $100 million, initially issued to FTX Ventures, the investment arm of the now-defunct cryptocurrency exchange FTX.
Under the terms of this agreement, Dave will secure the note for $71 million, a purchase made at a discount. This transaction is currently awaiting the green light from a bankruptcy court, with a hearing set for January 25. Convertible promissory notes are financial tools often utilized by emerging companies. They represent a form of debt that can eventually be converted into company equity.
Dave, known for its mobile app-based financial services including savings, cash advances, and spending accounts, has reportedly garnered $536.3 million across nine funding rounds, as detailed in its Crunchbase profile. The most recent financial boost for Dave came in September 2023, with a $50 million debit emission.
In March 2022, Dave formed an alliance with FTX to enable cryptocurrency transactions on its platform, a collaboration that also saw a $100 million investment from FTX Ventures.
Before FTX's bankruptcy in November 2022, numerous investments, payments, and contributions made by FTX and related entities were subject to reclamation by the bankruptcy court.
On December 19, FTX debtors disclosed a comprehensive settlement with the Joint Official Liquidators of FTX's Bahamian branch as part of the ongoing bankruptcy process. The involved parties described this settlement as an innovative and mutually advantageous resolution to complex international legal challenges.
Since declaring bankruptcy in November 2022, FTX debtors have submitted several petitions for the liquidation of company assets to repay creditors. The court has sanctioned multiple asset sales, including the divestiture of LedgerX, the sale of trust assets worth $873 million, the liquidation of digital assets valued at $3.4 billion, and an agreement to resolve disputes between FTX and Genesis.
Out of approximately $8.7 billion in misappropriated customer funds, authorities have successfully reclaimed at least $7 billion. FTX's founder, Sam Bankman-Fried, was convicted on multiple charges, including wire fraud, securities fraud, and money laundering conspiracy on November 2. His sentencing is slated for March 28, 2024.
