NAGA Group to Raise $8.2 Million through Convertible Bond Issuance

04/17/2023 15:32 • Blockchain Briefs • 91 views

It is reported that NAGA Group, the operator of cryptocurrency platform NAGAX, is seeking to raise US $8.2 million through the issuance of convertible bonds. The issuance of convertible bonds does not include the legal subscription rights of shareholders of listed companies on the Frankfurt Stock Exchange. The coupon is 11% and the period is six months from April 28 to October 30, 2023. NAGA Group also operates NAGA Pay, an innovative banking application. The company said that the decision to issue convertible bonds this time had been made by the company’s management committee, but it must be approved by the board of supervisors. （financemagnates）

NAGA Group plans to raise US $8.2 million by issuing convertible bonds

The cryptocurrency industry has seen significant growth over the past few years, and as it continues to expand, many companies are seeking new ways to raise funds to fuel their growth. One such company is NAGA Group, the operator of cryptocurrency platform NAGAX. According to recent reports, the company is seeking to raise US $8.2 million through the issuance of convertible bonds.

What are Convertible Bonds?

Before we dive into the details of NAGA Group’s convertible bond issuance, let’s take a moment to understand what convertible bonds are. Simply put, convertible bonds are debt instruments that can be converted into equity shares of the issuing company at a predetermined price and within a specific timeframe. This means that investors who hold these bonds have the option to convert them into company stocks in the future.

NAGA Group’s Convertible Bond Issuance

NAGA Group’s convertible bond issuance does not include the legal subscription rights of shareholders of listed companies on the Frankfurt Stock Exchange. The coupon for the bonds is set at 11%, and the conversion period runs from April 28 to October 30, 2023. This means that investors who purchase these convertible bonds can convert them into NAGA Group’s stocks at a predetermined price during this six-month period.
According to the company, the decision to issue convertible bonds was made by the management committee, but it must still be approved by the board of supervisors. NAGA Group also operates NAGA Pay, an innovative banking application that allows users to store, transfer, and spend cryptocurrencies.

Benefits of Convertible Bond Issuance

Convertible bond issuances can be a beneficial funding option for companies for several reasons. Firstly, they offer investors the potential for higher returns than traditional bonds since they have the option to convert into equity. Secondly, they provide companies with access to capital without diluting existing shareholders’ ownership. Lastly, convertible bond issuances can help companies attract a wider range of investors who may be more interested in the equity upside potential.

Conclusion

In conclusion, NAGA Group’s convertible bond issuance is a strategic move to raise funds to fuel its growth and expansion plans. The bonds’ 11% coupon rate is attractive to investors, and the conversion period provides a window of opportunity for them to convert the bonds into the company’s stocks at a predetermined price. This move demonstrates the company’s commitment to remain at the forefront of the cryptocurrency industry and offer innovative solutions to its customers.

FAQs

1. What is NAGA Pay?
NAGA Pay is an innovative banking application that allows users to store, transfer, and spend cryptocurrencies.
2. Who can purchase NAGA Group’s convertible bonds?
Investors who are interested in the company’s growth potential and are looking for higher returns than traditional bonds may consider purchasing these convertible bonds.
3. How will the convertible bond issuance benefit NAGA Group?
The convertible bond issuance will provide NAGA Group with access to capital without diluting existing shareholders’ ownership and help attract a wider range of investors interested in the equity upside potential.

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