SurgePays, Inc. (“SurgePays” or the “Company”), a wireless and fintech company, announced that it has signed a non-binding letter of intent with All Prepaid, LLC, dba LowWeeklyPayments (“LWP”), to form a joint venture to scale the smartphone rent-to-own program across the SurgePays independent retail dealer network.

Under the terms of the letter of intent, SurgePays will hold a 51% interest in the joint venture and serve as its Managing Member, and LWP will hold a 49% interest. The joint venture will combine SurgePays’ independent retail dealer distribution channel, dealer recruiting and field enablement, and shared corporate infrastructure with LWP’s proprietary rent-to-own platform, approval matrix, and in-store payment technology.

“At LWP, we built our approval matrix and rent-to-own platform to reach the customers that traditional financing programs turn away, the same subprime and underserved consumers SurgePays built its business around, and their dealer network gives that platform a distribution footprint we could not reach on our own,” said Enrique Hirlemann, Co-Founder of LWP. “Signing this letter of intent is a big step toward building that reach together, and we are looking forward to bringing this program to many more dealers and customers.”

“The purpose of this joint venture is to maximize the preliminary success of the rent-to-own business we have seen firsthand,” said Derron Winfrey, President, Sales and Operations, of SurgePays. “We know people want great smartphones, but we also know many cannot afford them. Additionally, dealers have inventories of phones they need to move consistently, and we saw an opportunity where dealers, customers, and SurgePays all win. Adding the LWP platform to our product suite has driven some of the best store acquisition results we have seen, helping us onboard more than 100 dealers already.”

The parties are now working to finalize a definitive operating agreement to formalize the joint venture, incorporating the governance, funding, and operating terms outlined in the letter of intent. SurgePays believes this joint venture represents a meaningful opportunity to build long term shareholder value, and the Company will provide additional updates as the venture advances.