Cardlytics, Inc. (NASDAQ: CDLX) is presently undergoing a significant uptick in its stock valuation on US charts. That is showcasing a remarkable 25.56% surge in Cardlytics stock, reaching $7.24 as of the last check during the current trading session. This upward trend follows the successful resolution of a legal conflict, contributing to the favorable momentum in CDLX stock performance.
In a recent update, Cardlytics (CDLX) officially declared the finalization of a settlement pact with Shareholder Representative Services LLC (SRS). All outstanding issues resulting from the Bridg merger agreement and the related earnout payments between the parties involved are essentially resolved by this agreement.
Additionally, Cardlytics has made public its preliminary financial results for the fourth quarter concluded on December 31, 2023. Based on preliminary data, the firm appears to have a bright future, with positive adjusted EBITDA predicted for the whole 2023 fiscal year.
As a result, Cardlytics will be able to comply with the provisions of the credit facility agreement and extend the credit facility’s maturity date to April 2025. On January 25, 2024, Cardlytics finalized a settlement agreement with SRS, the representative entity for former Bridg shareholders.
The agreement comprehensively resolves disputes linked to the Bridg merger, including those related to the first and second anniversary earnout payments. As part of the settlement terms, Cardlytics committed to a $25 million cash payment to SRS and the issuance of 3.6 million shares of Cardlytics common stock.
The cash payment structure involves $20 million in January 2024, $3 million in January 2025, and $2 million in June 2025. The issuance of Cardlytics stock is scheduled for February 2024. Notably, Cardlytics is relieved from making any additional payments concerning the previous withholding related to the first-anniversary earnout payment.
In addition to the settlement details, Cardlytics released preliminary and unaudited financial results for the fourth quarter ending December 31, 2023. CDLX confidently expects to meet or exceed its earlier guidance. The company’s commitment to cost discipline and operational efficiency has proven fruitful, as evidenced by its sustained profitability demonstrated in the fourth-quarter performance.
