M&A - NewtekOne, Inc.

Form Type: 8-K

Filing Date: 2025-01-02

Corporate Action: Merger

Type: New

Accession Number: 000158798725000002

Filing Summary: On January 2, 2025, NewtekOne, Inc. completed the sale of its wholly owned subsidiary Newtek Technology Solutions, Inc. (NTS) to Paltalk, Inc. This transaction was executed pursuant to an Agreement and Plan of Merger dated August 11, 2024. As part of the sale, Paltalk acquired NTS for a total consideration of $4,000,000 in cash, subject to adjustments, along with 4,000,000 shares of non-voting preferred stock. This preferred stock can convert into common stock under specific conditions. Additionally, NewtekOne may receive up to an earn-out of $5,000,000 based on Paltalk's financial performance in the upcoming fiscal years. NewtekOne retains the right to appoint a representative to Paltalk's board following the sale.

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