NAGA secures new financing to repay $8.2 million convertible bonds

NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, has secured a 12-month loan from an unidentified institutional investor.

The company did not disclose the loan’s exact amount but confirmed that the funds would partially address the repayment of the $8.2 million loan procured in April 2023 through the issuance of convertible bonds.

The new agreement ensures a timely repayment of $6 million next week, followed by the remaining $2.7 million, inclusive of accrued interest, by January 30, 2024. Additionally, the holder of the convertible bond has chosen not to exercise the conversion option, preventing potential dilution for NAGA shareholders.

Earlier in April, the Hamburg-based broker raised $8.2 million via convertible bonds, proceeds of which used to meet its working capital requirements. The company pays an 11% coupon interest on the bonds with a maturity of 6 months, from April 28, 2023 to October 30, 2023.

At the time, the German brokerage house said a major investor has already made a subscription commitment, with the issue amount equating to the full nominal amount it seeks to raise. The bonds are convertible into shares at an initial conversion price of $1.97 a share, subject to adjustments. This represents a 41% premium over Naga’s last closing price of $1.15 a share.

Elsewhere, NAGA launched its inaugural White-Label partnership with a regulated online brokerage based in Kuwait. The latter will soon unveil its own branded version, leveraging NAGA’s frontend and backend technology to expand social trading within the Middle East. This marks an additional revenue stream, as the SaaS vertical will generate platform fees alongside income tied to transactions and volume.

Furthermore, NAGA has developed a distinctive “Communities” feature, enabling select super-influencers, trading educators, and partners to operate and promote their own branded social trading communities using the NAGA Platform.

“In the course of our R&D and engineering efforts, we have identified a problem for our existing super influencers and partners who manage their communities using ordinary Social Media apps such as Instagram, Facebook or Telegram where communication and trading activity is disconnected. With the NAGA communities feature, Influencers can utilize all our social media features which are instantly connected with the trading platform and run their very own community branded as their own platform. This will drive more personalized engagement and identification of the community as a whole”, comments Founder & CIO