iPower Inc. (NASDAQ:IPW) surged 11.3% on Wednesday after the company revealed plans to pursue alternative funding arrangements to replace its existing bank-backed asset-based lending facility.
The e-commerce retailer said it is evaluating non-bank financing options designed to provide “greater flexibility and alignment” with its operating profile and long-term growth strategy. The company believes this shift will enhance its access to working capital and bolster its ability to execute strategic initiatives in today’s tighter credit environment.
“Optimizing our capital structure remains a top priority,” said Lawrence Tan, CEO of iPower. “By diversifying our financing sources and transitioning away from a traditional bank-backed ABL facility, we expect to enhance financial flexibility and position iPower to execute on our growth plans more effectively while maintaining prudent balance-sheet management.”
The technology-driven e-commerce company aims to strengthen its balance sheet and increase liquidity as financial conditions evolve.
The double-digit gain in IPW shares signals investor confidence in the company’s financing strategy and its potential to unlock greater flexibility for future growth.