Hamburg-based NAGA Group (XETRA: N4G) has taken out a loan from an unnamed institutional inverter, aiming to partially settle its convertible bond investors. The company raised $8.2 million in convertible bonds, with an 11 percent coupon, last April and has now negotiated the terms.
NAGA Renegotiated Terms of Convertible Bonds
The announcement yesterday (Tuesday) came before the maturity of the convertible bonds on October 30. With the amended term, the company will partially repay $6 million at the end of this month and the remaining about $2.7 million with interest on January 30, 2024.
The German company further highlighted that none of the convertible bond holders exercised the conversion rights, indicating that NAGA is ensuring the non-dilution of its shares.
Expansion Continues
NAGA is known for offering copy trading services but has expanded extensively in other areas. It operates as a brokerage with licenses from the regulators in Cyprus and Seychelles, while The NAGA Group AG is listed on the Frankfurt Stock Exchange. The company holds a Crypto Asset Service Provider (CASP) license in Europe and operates as a crypt asset service provider.
The company further revealed that its white-label product offering, available only in non-European global markets, is fully operational. An online brokerage from Kuwait has tapped the white-label service, which is yet to be launched. The partnership indicates the company’s ambitions to penetrate the Middle Eastern market with the new SaaS product, which will generate platform fees as well as transaction-based and volume-driven income.
Furthermore, NAGA Capital, the Seychelles unit, developed a ‘communities’ feature targeted to super-influencers, trading educators, and partners, allowing them to promote their services on the NAGA platform. However, the feature, similar to the white label, is only available for non-European global markets, as NAGA already launched it in Mexico.
“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,” said Benjamin Bilski, the Founder and CIO at NAGA. “This will drive more personalized engagement and identification of the community as a whole.”
NAGA recently revealed that it generated €28.4 million in revenue from its brokerage business in the first nine months of 2023. Its preliminary EBITDA for the period also stood at €4.2 million, at a ratio of around 15 percent.
