Dave acquires a convertible promissory note for USD 71 million

Following this announcement, the agreement between the two enterprises is set to enable Dave to purchase a convertible promissory note that was previously issued to FTX, with an original amount which was set at USD 100 million, for a discounted purchase price of USD 71 million. FTX filed a motion in its process of bankruptcy, aiming to proceed with seeking approval of the agreement. This is scheduled to be launched for the company on the 25th of January 2024. 

The closing of this transaction is currently conditioned upon the Bankruptcy Court’s approval of the agreement, as well as upon FTX’s condition to not enter into an alternative transaction for the sale of the convertible note. According to the company’s officials, this acquisition represents a capital allocation opportunity for Dave, as it will have the possibility to benefit from sufficient capital in order to execute its development strategy, without the need to raise any additional equity capital. 

FTX’s recent developments and strategy plans

In December of 2024, the estate of the collapsed crypto enterprise FTX officially announced its decision to submit a proposal to end bankruptcy in a court in the region of the US. 

According to the press release published at the time, the collapse of the crypto exchange occurred in November of 2022, coinciding closely with the disclosure of the unstable financial state of the company’s trading unit, Alameda. The overall bankruptcy plan was expected to take place by the 16th of December 2023, following earlier information proposals, which included strategies to return up to 90% of creditors’ funds in a secure and efficient manner. 

The new proposal took into account creditor and customer claims, which were classed according to the priority of the estate plans to give them, as well as the value of claims that were set to be calculated based on asset prices. This took place on the date the firm was filed for bankruptcy. In a separate statement, the company also aimed to maximise and efficiently distribute value for all creditors. The proposed plan was set to encounter resistance from different creditor groups until it received court approval, which had a hearing date scheduled for 2024.