PSQ Holdings acquires Credova Holdings

PSQ Holdings and Credova Holdings, a point-of-sale financing platform providing Buy Now Pay Later solutions catered to the shooting sports and firearms industries, entered into and consummated transactions that are the subject of an agreement and plan of merger dated as of March 13, including the merger of Credova with and into a wholly-owned subsidiary of the company established to facilitate the transaction. PublicSquare exchanged approximately 2.9 million shares of newly-issued Company Class A common stock for all of the outstanding shares of Credova. Additionally, all of Credova’s outstanding subordinated debt was canceled and either repaid or exchanged for newly-issued 10-year PublicSquare promissory notes, convertible into Company Class A common stock. Following the Merger, Credova is a wholly-owned subsidiary of the company. Credova management, including its CEO Dusty Wunderlich, have joined PublicSquare and will continue to run Credova’s business as part of PublicSquare. Wunderlich is also expected to join PublicSquare’s board of directors. Credova has financed over a quarter billion dollars in transactions since its inception in 2018, and its merchant and customer universe is additive to PublicSquare, with over 4,800 merchants onboarded to date and 2.8 million unique applicants to date. The acquisition is expected to be immediately accretive to the company, before any anticipated synergies, as Credova financials reflect estimated net revenues of $15.5M, adjusted EBITDA of $2.3M and Free Cash Flow of $1.6M during FY2023. Credova has exclusive partnerships with over 60% of the top online shooting sports retailers. The transaction was approved by the boards of directors of PublicSquare and Credova and by requisite stockholders of Credova. Jim Giudice, former Chief Legal Officer of Credova, will replace Stephen Moran as PublicSquare’s General Counsel. The remainder of the company’s management team is expected to remain unchanged and PublicSquare will continue to be headquartered in West Palm Beach, Florida.