The US online bank Dave will repurchase $100 million in convertible bonds at a discount from FTX.

In March 2022, the US neobank Dave accepted a $100 million investment from FTX Ventures, an investment firm affiliated with FTX. Following FTX's bankruptcy, Dave announced in a press release that it would repurchase the $100 million convertible note held by FTX for $71 million. This move aims to reduce the impact of FTX's liquidation on other investors in Dave and potentially recover some misused funds for FTX creditors.

Dave Says: Favorable Deal Reached with FTX

The U.S. fintech company Dave announced a major transaction with FTX Ventures Ltd. Dave has agreed to repurchase a $100 million Convertible Note from FTX for $71 million.

Founded in 2016, the company had raised over $500 million by January 2022, including a $3 million seed investment from entrepreneur Mark Cuban, before its initial public offering (IPO) in January 2022.

Bankruptcy Court Review Pending

FTX has filed with the bankruptcy court seeking approval for the transaction, which is scheduled for discussion on January 25, 2024. The completion of the transaction is subject to approval from the bankruptcy court and FTX's commitment not to engage in any other transactions involving the Convertible Note.

CEO of Dave: Financial Victory

The founder and CEO of Dave views this transaction as a financial victory. He stated, "This is a great capital allocation opportunity for Dave." He emphasized the company's strong financial position, eliminating the need for additional equity capital raise.