Dave Inc., one of the leading neobanks in the USA, announced that it has reached an agreement with FTX Ventures, which is in bankruptcy process.
Accordingly, Dave Inc purchased FTX Ventures' convertible debt security worth $100 million for $71 million.
It was stated that the completion of the transaction is conditional on the Bankruptcy Court approving the agreement and FTX not entering into an alternative transaction for the sale of the convertible bond.
Dave founder and CEO Jason Wilk said:
“We believe this transaction represents a compelling capital allocation opportunity for Dave. Taking the payment into account, we are confident we have sufficient capital to execute our growth plan without the need to raise additional equity capital.”
Following the positive news, FTX's native cryptocurrency FTT started to rise and increased by up to 15%.
FTT continues to trade at $2.99 at the time of writing.
*This is not investment advice.