Exclusive: NAGA Group to raise $8.2 million in convertible bond offering
FNG Exclusive… FNG had learned via regulatory filings made in Germany that Retail FX and CFDs brokerage firm Naga Group AG (ETR:N4G) is planning to raise USD $8.2 million in new capital in the coming days, via a private offering of convertible bonds.
NAGA apparently already has a subscription commitment from a major investor. We expect the company to make a formal announcement shortly.
The convertible bonds will carry a coupon of 11% and have a term of 6 months, from April 28, 2023 to October 30, 2023. The bonds will be convertible by the holder into NAGA Group shares at a conversion price of USD $1.97 at any time during the term – NAGA shares closed Friday at €1.75, equivalent to $1.94. If the conversion is completed, the share capital of the company will increase by €4.16 million, which corresponds to approx. 7.7% of the current share capital.
The move comes as NAGA seems to have turned a corner following a loss-making 2022. NAGA reported a slight increase in Q1-2023 revenues (as compared to Q3/Q4 2022), plus a return to (EBITDA) profitability, although the company has yet to report final figures for 2H-2022 and for Q1-2023. Hamburg based NAGA Group operates offshore (St Vincent & The Grenadines) site naga.com and CySEC-licensed nagamarkets.com.