NASDAQ-listed, AGBA Group Holding Limited (“AGBA” or “the Company”) the leading one-stop financial supermarket in Hong Kong entered into term sheets for a private placement offering with an institutional investor, AGBA’s Group President, Mr. Wing-Fai Ng and AGBA’s management team. Based on the currently executed term sheets, the contemplated placement will amount to US$6.2 million (“Share Placement”).
The purchase price of the Share Placement will be $0.70 per ordinary share of the Company and associated warrants. The subscribers to the shares will receive one warrant for every five shares subscribed. Each warrant is exercisable into one ordinary share at $1.00 per share six months after the issuance of the warrants.
The Share Placement represents a significant milestone for the Company, as it will be executed at a substantial premium to the Company’s current market price. This reflects the strong confidence and value placed on the Company’s prospects by both external investors and the management team. The management team, by investing their own capital in the Share Placement alongside external investors, demonstrates their alignment with shareholders’ interests and their commitment to driving the Company’s success.
The primary objective of the Share Placement is to fuel continued expansion of the Company and accelerate its path to profitability. The Share Placement will not only fuel growth, but also enhance the Company’s financial flexibility and enable it to pursue strategic acquisitions to strengthen its market position. Funds will further be utilized to invest in AGBA’s market leading intermediary platform, ushering in a ‘step change’ in technological capabilities.
The Share Placement will provide the Company’s new investor with a very compelling entry valuation and an aligned interest with all of the Company’s existing stakeholders to pursue long-term term shareholder value. By widening the investor base, AGBA will forge strong partnerships with individuals and institutions who share its long-term vision for success.
Mr. Wing-Fai Ng, Group President, AGBA Group Holding Limited said “I am extremely grateful that an institutional investor and our top management team are joining me in committing to the long-term success of AGBA Group. This first round of equity capital raising at a premium above the current market price demonstrates the conviction in our Company and provides growth capital to capitalize on the expected economic recovery in our core markets. Our primary focus is maximizing shareholder value through rapid market share growth, innovation and strategic initiatives.”
For more details, please refer to the Company’s Report on Form 8-K filed with the Securities and Exchange Commission on November 8, 2023. The latest press release is available on the company’s website, please visit www.agba.com/ir
