Targeted Strategies for Today's Evolving Markets

• FAVO recently secured an $8 million equity investment to fund growth and accelerate its plan to uplist to the Nasdaq Capital Market
•  The company voluntarily converted all super voting Series C Preferred Shares, simplifying its capital structure and improving governance transparency
• With SMBs turning away from traditional banks, FAVO’s revenue-based lending platform meets rising demand for fast, flexible funding solutions

As inflationary pressures and elevated interest rates strain traditional financing channels, small and medium-sized businesses (“SMBs”) are increasingly seeking alternative funding sources to maintain liquidity and drive growth. Bank approval rates for SMB loans have dropped significantly – from 83% in 2019 to just 68% in 2022 – creating a wide credit gap. This shift has accelerated demand for alternative lending options like merchant cash advances (“MCAs”) and revenue-based financing (“RBF”), which offer faster, more flexible access to capital.

Within this expanding sector, FAVO Capital (OTC: FAVO) stands out as a fintech-driven private credit firm built specifically to meet the evolving needs of underserved SMBs. The company has a multi-prong digital approach, including the development of an advanced digital platform designed to enhance client engagement and streamline funding processes.

Now, with fresh capital and governance reforms, FAVO is preparing for its next big milestone: an uplisting to the Nasdaq Capital Market.

Institutional Confidence Bolsters Growth Strategy

On May 6, 2025, FAVO Capital announced an $8 million Series A Preferred equity investment from Stewards Investment Capital, a global asset manager specializing in fintech and private credit. The investment is a clear signal of institutional confidence in FAVO’s growth trajectory, platform scalability, and strategic vision.

“This funding further positions us to serve the capital needs of underserved SMBs with speed, flexibility, and transparency,” said FAVO CEO Vincent Napolitano. The investment will be used to accelerate SMB lending, strengthen the company’s balance sheet, and expand embedded lending partnerships. It also allows FAVO to restructure a portion of its outstanding debt, increasing its financial agility ahead of its planned Nasdaq uplisting.

Governance Overhaul Reflects Public Market Readiness

Just a week after the funding news, FAVO took another major step toward its Nasdaq ambitions by announcing the voluntary conversion of all outstanding Super Voting Series C Preferred Shares into common stock. This move simplifies the company’s capital structure and aligns voting rights with shareholder-friendly governance standards expected on senior exchanges.

“Converting our Series C Super Voting Shares demonstrates our commitment to transparency, governance and best practices,” said Napolitano. “It’s another important step forward as we align our structure with shareholder and institutional investor expectations.”

By eliminating super voting rights, FAVO has increased accessibility and reduced barriers for potential institutional investors, a crucial element for long-term capital market success.

Riding a Multi-Billion Dollar Lending Wave

The timing of FAVO’s expansion couldn’t be more favorable. The MCA market, valued at $19 billion in 2021, more than doubled from five years prior. Meanwhile, the RBF market is expected to grow from $4.75 billion in 2025 to $14.5 billion by 2034, according to recent projections.

FAVO’s fintech-first approach allows for quick underwriting, dynamic risk assessment, and loan structuring that reflects real-time business conditions far beyond the rigid credit models of traditional banks. With over 10,000 SMBs already served, the company has built a scalable foundation for national growth.

As economic volatility persists and access to bank credit remains constrained, businesses are prioritizing flexibility, speed, and financial partners who understand their day-to-day cash flow dynamics. FAVO’s revenue-based financing options offer exactly that, tying repayments to company revenue and easing pressure during slower months.

Positioned for Public Market Momentum

With a simplified share structure, new institutional capital, and an increasingly vital service offering, FAVO Capital is methodically laying the groundwork for a Nasdaq uplisting. Such a move would elevate the company’s visibility, attract new classes of investors, and unlock greater access to capital for continued expansion.

As SMBs continue to seek more agile, non-bank financing partners, FAVO Capital appears well-positioned to meet that demand while simultaneously transitioning from a small OTC company to a player with national ambitions and institutional credibility.

For more information, visit the company’s website at FAVOCapital.com.

NOTE TO INVESTORS: The latest news and updates relating to FAVO are available in the company’s newsroom at https://ibn.fm/FAVO

About MissionIR

MissionIR (“MIR”) is a specialized communications platform with a focus on assisting IR firms with syndicated content to enhance the visibility of private and public companies within the investment community. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MIR is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MIR brings its clients unparalleled recognition and brand awareness.

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FAVO Capital (OTC: FAVO) is developing a digital lending platform to address the persistent financing gap faced by underserved small and medium-sized businesses (“SMBs”). Traditional banks often deny credit to these businesses due to outdated underwriting models, creating a market ripe for disruption. FAVO is responding with fast, flexible, and accessible capital solutions for SMBs that are often overlooked. With more than 5.5 million new business applications filed in the U.S. last year alone, FAVO’s tech-driven approach is well-positioned to serve this growing segment with real-world financing solutions.

To view the full article, visit https://ibn.fm/yZZI4

About FAVO Capital Inc.

FAVO Capital is a rapidly growing alternative finance company headquartered in Fort Lauderdale, Florida. The company offers personalized alternative finance solutions to emerging, small and medium-sized businesses. “FAVO” is “Honeycomb” in Latin – The Honeycomb (Hexagon) is the most efficient shape in the universe. FAVO intends to be efficient, flexible and durable. For more information visit www.FavoCapital.com.

NOTE TO INVESTORS: The latest news and updates relating to FAVO are available in the company’s newsroom at https://ibn.fm/FAVO

About MissionIR

MissionIR (“MIR”) is a specialized communications platform with a focus on assisting IR firms with syndicated content to enhance the visibility of private and public companies within the investment community. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MIR is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MIR brings its clients unparalleled recognition and brand awareness.

MIR is where breaking news, insightful content and actionable information converge.

For more information, please visit www.MissionIR.com

Please see full terms of use and disclaimers on the MissionIR website applicable to all content provided by MIR, wherever published or re-published: https://www.MissionIR.com/Disclaimer

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• The private credit market has experienced remarkable growth over the past decade, evolving from a niche segment to a cornerstone of the financial ecosystem
• FAVO Capital offers a range of financing options, including revenue-based funding and merchant cash advances
• The company’s impact is reflected in its impressive track record of supporting 10,000-plus small businesses, deploying more than $138 million in capital nationwide

In today’s increasingly fragile economic landscape, small and mid-sized businesses (“SMBs”) face mounting challenges in securing the funding necessary for growth and sustainability. Traditional banks, constrained by stringent regulations and risk-averse policies, often fall short in meeting the unique financial needs of these enterprises. This funding gap has paved the way for alternative financing solutions, with private credit emerging as a vital lifeline. Among the key players in this space is FAVO Capital (OTC: FAVO).

The private credit market has experienced remarkable growth over the past decade, evolving from a niche segment to a cornerstone of the financial ecosystem. According to Preqin, private credit assets under management have surged from $500 billion in 2013 to more than $1.7 trillion in 2025, reflecting a compound annual growth rate of approximately 14% (ibn.fm/Tda5P). This expansion is driven by the increasing demand for flexible, non-bank financing options, particularly among SMBs that are underserved by traditional lenders.

SMBs are the backbone of the global economy, accounting for a significant share of employment and GDP. However, they often encounter barriers when seeking financing through conventional channels, such as lengthy approval processes, rigid collateral requirements and limited loan customization. Private credit providers address these challenges by offering tailored financing solutions that align with the specific needs and risk profiles of SMBs. This approach not only enhances access to capital but also fosters innovation and competitiveness within the SMB sector.

FAVO stands out as a leading private credit provider, specializing in delivering fast, efficient and personalized funding solutions to SMBs across the United States and the Dominican Republic (ibn.fm/r3G1p). Leveraging advanced technology and data-driven underwriting processes, FAVO Capital offers a range of financing options, including revenue-based funding and merchant cash advances, designed to accommodate the diverse financial requirements of SMBs.

The company’s commitment to innovation is evident in its integration of fintech solutions that streamline the lending process, enabling quicker decision-making and disbursement of funds. By harnessing artificial intelligence and machine learning algorithms, FAVO Capital enhances its risk assessment capabilities, ensuring more accurate and efficient credit evaluations. This technological edge not only improves the borrower’s experience but also strengthens the company’s portfolio performance (ibn.fm/wSxBW).

FAVO Capital’s impact is reflected in its impressive track record of supporting more than 10,000 small businesses and deploying more than $138 million in capital nationwide (ibn.fm/UEjm1). The company’s strategic focus on underserved markets and commitment to fostering long-term partnerships with clients underscore its role as a catalyst for SMB growth and resilience.

As the private credit market continues to evolve, FAVO Capital is poised to capitalize on emerging opportunities and expand its footprint. The company’s recent initiatives, including a $8 million Series A preferred investment and plans to uplist to the Nasdaq, signal a strong trajectory of growth and institutional engagement (ibn.fm/vEfc4). By staying at the forefront of industry trends and maintaining a client-centric approach, FAVO Capital exemplifies the transformative potential of private credit in empowering SMBs and driving economic progress.

For more information, visit the company’s website at FAVOCapital.com.

NOTE TO INVESTORS: The latest news and updates relating to FAVO are available in the company’s newsroom at https://ibn.fm/FAVO

About MissionIR

MissionIR (“MIR”) is a specialized communications platform with a focus on assisting IR firms with syndicated content to enhance the visibility of private and public companies within the investment community. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MIR is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MIR brings its clients unparalleled recognition and brand awareness.

MIR is where breaking news, insightful content and actionable information converge.

For more information, please visit www.MissionIR.com

Please see full terms of use and disclaimers on the MissionIR website applicable to all content provided by MIR, wherever published or re-published: https://www.MissionIR.com/Disclaimer

MissionIR
Los Angeles, CA
www.MissionIR.com
310.299.1717 Office
Editor@MissionIR.com

MissionIR is powered by IBN