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- During a successful restructuring process a new growth strategy is to be applied
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- Shareholders and management agreed on additional 3 years loc up
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Hamburg - Thursday, August 29, 2019
After a challenging year and intense restructuring work in Q1 2019, NAGA's major shareholder FOSUN agreed to increase its shareholdings to become NAGA's majority shareholder. Alongside FOSUN's investment, it is envisaged that the NAGA management team will buy a significant amount of shares from other shareholders. The shares will be sold by the former HBS AG shareholders to FOSUN, the NAGA management and other investors respectively.
Following the positive developments of the new management focus and cost reductions, FOSUN also agreed to grant NAGA additional growth capital of EUR5 Million. EUR3Million will be injected through a Senior Loan and EUR2Million via a convertible note.
To ensure a stable growth, close to 90 % of the shareholders agreed to further extend their lockups for 3 more years. Additionally, these shareholders have pooled their voting rights for the same period of time.
NAGA's Founder & CEO Benjamin Bilski comments: "We are really confident that our strategy will work out and lead to a positive development. Thanks to our renewed team, our enhanced customer focus and directive for profitability we are delighted to see FOSUN as a majority shareholder. The additional funding of EUR5M to drive our growth will help the company tremendously. 4 years after establishment, NAGA has matured and overcome several challenges. We are very confident to reach our goals and turn the company around".
The Vice President of Fosun Technology and Financial Group Alan Liu adds: "We have a strong belief in NAGA's technology and innovation in digital investing sector. With a great potential, Naga is growing very fast. The new management strategy and recent developments are convincing. We will work closer with the management and expect to generate a significant synergy between Fosun and Naga in the future."
The deal is subject to regulatory approval and is expected to close in early Q4 2019.
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THE NAGA GROUP AG:
THE NAGA GROUP AG (NAGA) was founded in August 2015 by Yasin Sebastian Qureshi and Benjamin Bilski. The company's goal is to drive the development, marketing and growth of disruptive applications for financial technology, and to actively participate in the change and opening up of the existing financial system. The word "NAGA" is Sanskrit and means "Cobra snake". It is also the name of the world's hottest chillies.
Link THE NAGA GROUP Website:
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Contact:
The NAGA Group AG
Neustädter Neuer Weg 22
20459 Hamburg
E:
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