SurgePays Inc (SURG)

[bUrRpPPP!]

Date: February 16th, 2023

Headline: SurgePays Announces Distribution Agreement with Capital Candy Co.16

Store Count from Filings: 8,000 (-1,800)

Theoretical Store Count: 52,800+

In this release, President of SurgePays FinTech, Jeremy Gies, said, “This agreement is a great opportunity for SurgePays to expand our footprint into an area of the country with few stores transacting on the SurgePays network. With our capability to enroll new ACP customers at the store counter, we are especially looking forward to the revenue potential both companies can benefit from this collaboration.”

Our team spoke with a representative of Capital Candy about the partnership. They stated that while their customers can use SurgePays suite of offerings on their own, Capital Candy Co. primarily works with SurgePays prepaid gift cards business, not SurgePays FinTech or SurgePhone Wireless.

Overall, from early 2019 to the present, SurgePays CEO has highlighted partnerships as the next wave of expansion to 50,000+ stores. In reality, these partnerships appear have nothing to do with the SurgePays FinTech Platform, and the SurgePays network store count has declined. As recently as the Q1 2023 earnings call, Mr. Cox stated, “We are utilizing this great ACP program as the enticing catalyst to build what is now over 25,000 stores to be on-boarded with a staging target of less than 12 months.” We believe that Mr. Cox continues to mislead investors about the growth of the SurgePays network and history shows that SurgePays will fail to achieve their goal of 25,000 new stores on the network.