Shares of publicly traded Retail FX and CFDs broker NAGA Group AG (ETR:N4G) dropped by 15% on Monday, falling to “penny stock” territory and setting a new 52-week low in the process.

The share price drop came after our FNG Exclusive report from early Monday, that NAGA had completed its 2022 financial statements and Annual Report following a long delay caused by a restatement of previous results, and a switch in auditors from Ernst & Young to MSW GmbH. Our widely-shared report unveiled that NAGA posted a whopping net loss of €37 million (USD $40 million) in 2022.

At its closing price of €0.99 – down 15% from Friday’s close was €1.16 – NAGA shares dropped below €1 for the first time in nearly four years, dating back to early 2020. NAGA shares were trading above €8 in late 2021. At its current share price, NAGA Group has a market capitalization of about €54 million (USD $58 million).

NAGA does seem to have stopped the bleeding somewhat in 2023 despite falling Revenues, with the company stating that it saw positive EBITDA of €4.2 million for the first nine months of 2023. However NAGA was compelled to renegotiate an $8.2 million loan taken our earlier this year (in the form of Convertible Bonds) which came due last week, paying back some of the old loan with the proceeds of a new 12-month loan, and deferring some of the old loan repayment to early 2024.

NAGA Group 1-year share price graph. Source: Google Finance.