Existing ACP Customers Can Now Opt-in to Lifeline
Program
BARTLETT, Tenn., Oct. 10,
2024 /PRNewswire/ -- SurgePays, Inc. (Nasdaq: SURG)
("SurgePays" or the "Company"), a technology and telecom company
announced today that it has signed a Master Services Agreement
(MSA) with TerraCom, Inc. ("TerraCom"), a wireless service provider
and licensed Lifeline provider, effective October 3, 2024. SurgePays and TerraCom
have agreed to finalize a stock purchase agreement to acquire the
majority of TerraCom stock, subject to regulatory
approval.
SurgePays can now execute its stated strategy of offering
Lifeline to its existing ACP subscriber base. Chairman and CEO
Brian Cox commented, "This agreement
allows us to offer a government-subsidized program to our 280,000
ACP wireless subscribers. Equally important, we can now
reignite our sales channels to acquire new Lifeline subscribers who
lost their ACP service when their carrier chose to shut them
off."
The government reimbursement under the Lifeline program ranges
from $9.25 to $34.25 per month, depending on the state. ACP
customers can qualify almost identically under the Lifeline
program.
Mr. Cox added, "We will aggressively move from self-funding our
wireless customers to now having them funded by Lifeline,
solidifying my confidence that we will return to being free cash
flow positive. I am happy with our choice to spend millions
of dollars to keep our customers connected. We believe the decision
to retain our ACP customers, by putting our strong balance sheet to
work after the government chose to stop funding the program, looks
to have been the right business decision. ACP may come back after
the election. Either way, we believe we have set a path to
profitability again with Lifeline as a safety net for our customers
who qualify."
Along with now being able to offer a Lifeline option to its
wireless customer base, the Company is ramping sales efforts on
Linkup Mobile, Wireless Top-Up and Clearline, pursuing multiple
growth channels and putting the Company in a strong operating
position heading into 2025.
About SurgePays, Inc.
SurgePays, Inc. is a technology and telecom company focused on
the underbanked and underserved communities. SurgePays'
technology-layered platform empowers clerks at over 8,000
convenience stores to provide a suite of prepaid wireless and
financial products to underbanked customers. SurgePays prepaid
wireless companies provide services to over 280,000 low-income
subscribers nationwide. The company ranks as the 345th
fastest-growing tech company in North
America according to the 2023 Deloitte Technology Fast 500.
Please visit SurgePays.com for more information.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that
are not historical facts and are considered forward-looking within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act. Forward-looking statements involve
substantial risks and uncertainties. Forward-looking statements
generally relate to future events or our future financial or
operating performance and may contain projections of our future
results of operations or of our financial information or state
other forward-looking information. In some cases, you can identify
forward-looking statements by the following words: "may," "will,"
"could," "would," "should," "expect," "intend," "plan,"
"anticipate," "believe," "estimate," "predict," "project,"
"potential," "continue," "ongoing," "attempting," or the negative
of these terms or other comparable terminology, although not all
forward-looking statements contain these words.
Although we believe that the expectations reflected in these
forward-looking statements are reasonable, these statements relate
to future events or our future operational or financial performance
and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements including but not limited to, our
ability to acquire new Lifeline subscribers who lost their ACP
service, ability of ACP customers to qualify under the Lifeline
program, our ability to ramp sales efforts on Linkup Mobile,
Wireless Top-UP and Clearline, and our ability to execute our
business plan. Furthermore, actual results may differ materially
from those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our
control, including, without limitation, whether the ACP is funded
again, our ability complete the transaction with TerraCom,
statements about our future financial performance, including our
revenue, cash flows, costs of revenue and operating expenses; our
anticipated growth; and our predictions about our industry. The
forward-looking statements contained in this release are also
subject to other risks and uncertainties, including those more
fully described in our filings with the Securities and Exchange
Commission ("SEC"), including in our Annual Report on Form 10-K for
the fiscal year ended December 31,
2023, and our quarterly reports on Form 10-Q for the periods
ending March 31, 2024, and
June 30, 2024. The forward-looking
statements in this press release speak only as of the date on which
the statements are made. We undertake no obligation to update, and
expressly disclaim the obligation to update, any forward-looking
statements made in this press release to reflect events or
circumstances after the date of this press release or to reflect
new information or the occurrence of unanticipated events, except
as required by law.
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SOURCE SurgePays