SurgePays forms Redline Wireless joint venture to reach 20,000 dealers

SurgePays, Inc. (NASDAQ: SURG) announced the formation of Redline Wireless Group, LLC, a joint venture with an undisclosed wireless master distribution organization that operates a network of more than 20,000 active independent prepaid wireless dealers across the United States.

Redline, incorporated as a Wyoming limited liability company, will distribute and support prepaid wireless services through that dealer footprint, combining SurgePays' mobile virtual network operator infrastructure and its LinkUp Mobile brand with the partner's national distribution channel.

SurgePays holds a 51% controlling interest in Redline, with the unnamed partner holding the remaining 49%. The company said it intends to consolidate Redline as a majority-owned subsidiary under Accounting Standards Codification 810, with the partner's stake reported as a noncontrolling interest.

The company said the joint venture is expected to be cash flow positive in its first month of commercial operations, though it characterized this as a forward-looking projection subject to risk.

"We are pairing our full MVNO infrastructure with one of the largest independent dealer distribution footprints in the country, more than 20,000 active dealers already selling prepaid wireless every day," said Brian Cox, Chairman and Chief Executive Officer of SurgePays. "Both parties share the goal of reaching more than 1 million subscribers in the coming years."

Cox added that internal projections show Redline generating more revenue and profit by month 18 than any prior SurgePays subsidiary, though the company noted these are forward-looking statements and actual results may differ materially.

SurgePays is headquartered in Bartlett, Tennessee, and operates a point-of-sale platform in approximately 9,000 convenience stores nationwide.

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