NAGA adds Seychelles license, updates results
Social trading focused Retail FX and CFDs broker NAGA Group (ETR:N4G) has announced that it has received a financial license from the Seychelles regulator to accelerate its global business.
Benjamin Bilski, Founder & CEO of NAGA said:
“The license from Seychelles offers a fully regulated environment for our business outside Europe, it will enable us to strengthen banking and payment relationships and unlock significance for our B2B segment. In addition, customers are better protected. We have been working for several months on this license and are happy to get it operational in Q4.”
NAGA currently operates its nagamarkets.com website under a CIF license from Cyprus financial regulator CySEC, and it appears as though naga.com will operate under the Seychelles license.
In addition to the license announcement, NAGA also announced that its NAGAX crypto unit has signed a Letter of Intent with Brazil’s Guide Investimentos to launch a Joint Venture to offer a crypto trading platform in Brazil using the capabilities of NAGAX for spot and staking of crypto assets. Guide Investimentos is one of the largest digital asset management platforms in Brazil and owned by the FOSUN group. Mr. Bilski added:
“The Brazilian market for digital products is growing rapidly. Crypto is one of the fastest growing segments in the Brazilian online market. Guide has already established itself in Brazil and processing already billion in trading volume from its brokerage business. NAGAX offers a strong crypto ecosystem for Guide and will enable Guide clients to immediately get access to crypto services. Especially in the current market conditions, we are getting ready for the next wave of crypto adoption, hence we are extremely excited about this partnership”.
NAGA also released some information regarding its financial health, as its stock hovers near a 52-week low just above €1 – late last year NAGA shares were changing hands in the €8-9 range. As previously reported, NAGA management has started to cut costs and drive operational efficiency throughout its business. The monthly cost has already come down by over 30%, whilst revenues in August and September were at HY1 2022 average levels. In September NAGA achieved its best result on operating cash flow basis in 2022 by delivering over EUR 1 million operating cash flow.
NAGA Group one year share price graph. Source: Google Finance.
“We keep improving our cost. We are not where we want to be yet, however it’s promising for us to see that we can maintain a strong topline growth and operate the business from its own cash flow. Our goal is to position ourselves to drive the business forward without the need for additional funding, and only get additional funding to drive new business and innovation or to accelerate when the markets come back”, commented Bilski on the positive developments.
“However, we must admit that this year has been very challenging for us. From unexpected accounting changes to an unprecedented pressure on the stock market which has affected our share price and valuations significantly, to investing and launching products such as NAGAX in the worst possible market conditions for the crypto market. We have learnt a lot this year and we stay committed and in full belief to NAGA. We have truly built a strong platform; we see the growth and the potential, and this gives us a lot of confidence for the upcoming period. We want to express our gratitude to our investors who remain committed and supportive to the Management during a turbulent time whilst we commit to work relentlessly to prove once again that NAGA is truly a growing and substantial FinTech company with sustainable revenue streams and an agile Management who understands how to navigate through tough times.”
Finally, after several months of delay due to complex audit work, NAGA said that its audit firm E&Y have concluded the work on the audited financial statements, and will release its signed-off financial statements 2021 on October 14.