EzFill announces strategic transactions, debt restructuring

EzFill Holdings announced a series of strategic transactions aimed at bolstering its financial position and regaining compliance with Nasdaq listing requirements, subject to Nasdaq confirmation. The transactions, which have closed, leave the Company essentially debt free except for a small outstanding loan, current payables, and certain vehicle financing; and augment the Company’s cash position. The debt conversions alone are expected to eliminate an estimated $1.2 million in annual interest expense. EzFill has entered into a Stock Purchase Agreement with NextNRG Holding Corp. Under this agreement, Next purchased 140,000 shares of EzFill’s Series B Convertible Preferred Stock for $10.00 per share, resulting in a total investment of $1,400,000. Separately, EzFill has executed two significant debt-to-equity conversion agreements which converted approximately $13.5 million of debt into equity. In the first, certain promissory notes issued by EzFill to Next were exchanged and converted into 3,525,341 shares of common stock of EzFill at the Nasdaq minimum price of $2.78 per share. In addition, certain promissory notes issued by EzFill to AJB Capital Investments, were exchanged and converted into 363,000 shares of Series A Preferred stock in EzFill. In conjunction with these agreements, EzFill has filed certificates of designation for 513,000 shares of Series A Preferred Stock and 150,000 shares of Series B Convertible Preferred Stock with the Delaware Department of State.