DigiAsia Corp. Announces Completion of Convertible Note Financing with Helena Partners and Extinguishes Outstanding Debt
Rhea-AI Summary
DigiAsia Corp. (NASDAQ: FAAS) announced the completion of a convertible note financing with Helena Partners, resulting in net proceeds of $3.0 million. The company issued $5.2 million in Senior Unsecured Convertible Notes to extinguish all inherited debt from its business combination with StoneBridge Acquisition The Notes bear a 12% annual interest rate, payable quarterly, and mature in one year. Helena has the option to convert the principal and accrued interest into DigiAsia common stock. The remaining funds will be used for general corporate purposes and growth capital investment.
AI-generated analysis. Not financial advice.
Positive
- Completion of convertible note financing raised $3.0 million net proceeds.
- Extinguished all inherited debt from the business combination with StoneBridge Acquisition
- Remaining proceeds will be used for growth capital and general corporate purposes.
Negative
- The issued Notes bear a high interest rate of 12% annually, increasing financial obligations.
- Notes mature in one year, adding pressure on DigiAsia's financial planning.
News Market Reaction – FAAS
On the day this news was published, FAAS declined 0.19%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
~ Prompt Extinguishment of Debt Following Recent Listing as a Public Company Prioritizes Financial Responsibility with a Healthy Capital Structure ~
NEW YORK, July 02, 2024 (GLOBE NEWSWIRE) -- DigiAsia Corp. (NASDAQ: FAAS) (“DigiAsia” or the “Company”), a leading Fintech as a Service (“FaaS”) ecosystem provider, today announced it has received net proceeds of
As announced on June 21, 2024, the Notes bear interest at a rate of
EF Hutton LLC acted as the exclusive placement agent for the offering. Winston & Strawn LLP acted as legal advisor to DigiAsia.
Forward-Looking Statements:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning DigiAsia and the Company’s operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. DigiAsia cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world including those discussed in DigiAsia’s Form 20-F under the headings “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and DigiAsia specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.
DigiAsia Company Contact:
Subir Lohani
Chief Financial Officer and Chief Strategy Officer
646-480-0142
Investor Contact:
MZ North America
Email: FAAS@mzgroup.us
