Lendway shares surge 12.40% after-hours as rights offering targets 40% debt cut, name change to Bloomia.

Lendway (LDWY) surged 12.40% in after-hours trading following its announcement of a strategic rights offering to reduce debt by up to 40% immediately and potentially 70% by summer, alongside a name change to Bloomia Holdings, Inc. The offering aims to settle a $15 million sellers’ note for $7.33 million, repay $6.6 million in related party debt, and fund strategic investments, with proceeds projected to strengthen the balance sheet and boost earnings. Executives emphasized the transaction’s immediate debt reduction and long-term growth potential, noting that major shareholders and the executive team will participate. The company will trade under the new ticker TULP after the name change. The rights offering’s structure, which allows all shareholders to participate, and the anticipated financial benefits likely drove the after-hours rally.