To holders of outstanding Worthy Peer Capital 2 bonds,

As of 7/26/23, Worthy was unfortunately forced to temporarily pause redemptions in the Worthy Peer Capital 2 offering. We have moved to an automated redemption model in order to honor disbursements as delayed funds become available in part through our collections process.

Many of the small businesses we lent to in 2019 & 2020 are still struggling with the aftermath of Covid-related closures and challenges, and Worthy’s current illiquidity is a direct result of their struggles. For example, many of the affected business owners are now on delayed repayment plans in an effort for us to recover those funds. Some of the recovery also includes lengthy legal maneuvering which we understand adds to a frustrating delay for our bondholders. Our parent company is also pursuing alternative financing options to address redemptions in light of the few borrowers who have opted for extremely lengthy payment plans or who are no longer in business.

Please know that whenever there is a material change in our bond offerings - such as this redemption pause - we are required to notify the SEC, which we have done. Additionally, we continue to file all of our required disclosures and we get independently audited every year so we remain compliant with regulatory requirements.

It’s worth noting that these redemption pauses impact fewer than 5%-10% of our bonds - meaning over 90% have been paid as promised, on-demand or at maturity. As to bonds affected by the redemption pause, we have already paid out over 1.5 million dollars to date in principal and interest, and are making continual disbursements of recovered funds as they become available in the paused offerings. We know this doesn't remedy your immediate situation, but we want you to know that it is both our business model and honest intention to continue on this path and to ultimately make all of our affected investors whole.

Although we don't have a specific payout date on your account, we continue to make these payments as our past-due loans are liquidated, based on the order of factors such as bond maturity and withdrawal attempt dates. In the meantime, your withheld bonds continue to earn 5.73% (APY) until they can be redeemed.

Please forgive our general lack of communication in terms of updates. We know many of you reach out, hoping for good news. We have chosen not to provide "general" updates as frankly there isn't much to share given the slow process of collections, but most bondholders affected by this redemption delay, understandably, are focused specifically on when they will get access to their personal funds. Since that is not something we can reliably predict (given the complications of the collection process), our focus to date has been on communicating with bondholders when their paused funds were being released. That said, we are also working on additional parent company financing and we hope to receive good news on this front soon.

As you can imagine, it was never our intention to have to pause our withdrawals, but we also never foresaw a global pandemic that would so severely impact some of our business borrowers. We will not rest until we’ve fulfilled our obligations to all impacted investors.

Sincere apologies for the inconvenience - we truly do understand your frustration as many of our own employees and management also have their own bonds under redemption pause. We are grateful for your patience and understanding throughout this process.