- RYVYL Inc. (RVYL, Financial) files S-1 registration statement amid strategic restructuring and focuses on North American revenue growth.
- Company targets $1.045 million in quarterly cost savings through workforce and contractor reductions.
- Plans to raise $100 million for acquisition of a digital assets entity, pending shareholder approval.
RYVYL Inc. (RVYL) has filed an S-1 registration statement as part of its significant strategic restructuring moves. The company aims to enhance its business plan by emphasizing North American revenue growth, particularly in a legacy vertical market that generated $12 million in the fourth quarter of 2023.
As RYVYL pivots its focus towards blockchain and cryptocurrency capabilities, it has undertaken vital operational changes, including a 40% reduction of its North American workforce, translating to savings of around $780,000 per quarter. An additional $265,000 in quarterly savings is anticipated from reducing engineering contractors.
In alignment with its strategic objectives, RYVYL has completed the sale of its European subsidiary and entered a letter of intent to acquire a complementary digital assets entity. This acquisition, however, is contingent upon raising a minimum of $100 million, requiring shareholder consent for the acquisition itself, a possible increase in authorized common stock, and a potential reverse stock split.
Reflecting the uncertainty surrounding these strategic changes, RYVYL has withdrawn its 2025 financial guidance. These comprehensive steps indicate a robust restructuring effort aimed at tackling financial challenges while positioning the company for growth within the blockchain sector.
