NAGA secures new funding, announces key executive hires

abdelaziz Fathi

NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, said it has secured $8.2 million via convertible bonds, proceeds of which will be used to meet its working capital requirements.

NAGA has also made a series of new additions to its top management team, hiring new executives for key leadership positions, with Michael Milonas taking on the role of Group CEO (Chief Strategy Officer). Benjamin Bilski, the company’s previous CEO, will now shift his focus to technology as the Chief Information Officer (CIO). Additionally, NAGA has appointed Sam Chaney as the Chief Commercial Officer (CCO), responsible for driving global growth in emerging markets.

“We are delighted to announce the appointment of Sam Chaney as the new CCO for NAGA”, Michael Milonas says on behalf of the German Fintech company. “With a wealth of experience in the industry, Sam Chaney will be a valuable addition to the team.”

“I am extremely excited to be joining NAGA and being part of such an innovative and forward-thinking team,” said Sam Chaney. “The company’s vision to provide customers with a unique, user-friendly trading and investing experience, in combination with its commitment to product development, makes it a compelling work environment. I am excited to contribute to NAGA’s future growth and success and look forward to working with the team.”

As announced before, the company will pay an 11% coupon interest on the bonds with a maturity of 6 months, from April 28, 2023 to October 30, 2023, subject to the approval of the supervisory board.

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 would be convertible into shares at an initial conversion price of $1.97 a share, subject to adjustments. This represents a 19% premium over Naga’s last closing price of $1.65 a share. Upon full conversion, the share capital will increase by EUR 4.1 million which corresponds to approximately 7.7% of the current share capital, the company said.

Earlier in April, the group reported its brokerage business revenue was reported at €11.6 million, down 36 percent from €18 million in the year earlier. In terms of its bottom-line metrics, the Q1 EBITDA was €1.7 million compared to €5 million in Q1 2022, down by two thirds on a year-to-year basis.

The weak performance came despite a notable decline in the broker’s operational expenses. Specifically, NAGA brought its monthly cost down to an average of €3.3 million, which is 40% lower compared to €5.5 million in Q1 2022. The company expects a further cost decrease by around 20% during Q2 2023 whilst keeping its growth trajectory.

NAGA Group revealed earlier this year that it’s discussing a possible merger with an international brokerage firm. The announcement suggests the two companies are hopeful of striking a deal by the end of the year, pending regulatory approval. Naga said it will maintain its current listing status following the consummation of any such transaction.

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