Currenc Group secures up to $33 million in convertible notes financing

SINGAPORE - Fintech company Currenc Group Inc. (NASDAQ:CURR), currently valued at $131.25 million market cap, has entered into an agreement to issue and sell up to $33 million in unsecured convertible promissory notes due October 8, 2027, according to a press release statement. InvestingPro data indicates the company faces financial challenges with negative EBITDA of $32.16 million in the last twelve months.

The company has already closed on an initial $4.4 million principal amount, receiving net proceeds of $4 million. The remaining amount will be drawn in tranches, subject to certain conditions outlined in the transaction documents.

The notes are unsecured, unsubordinated obligations that include 50% warrant coverage with an exercise price of $1.85 per share. They will bear interest at 5.00% per annum and can be convertible at the holders’ option at an initial conversion price of $1.85 per share.

Currenc may prepay the notes with a 10% prepayment premium and can extend the maturity date once by up to six months. The company intends to use the proceeds for general corporate purposes, including working capital and growth initiatives, and may repay existing debt.

In connection with the financing, Currenc agreed to file a registration statement with the SEC covering the resale of ordinary shares issuable upon conversion of the notes and exercise of the warrants within 60 days after each closing.

Ladenburg Thalmann & Co. Inc. served as sole financial advisor to the company for this transaction.

Currenc Group provides AI solutions to financial institutions, including AI-powered call center technology and digital remittance platforms. The company trades on the Nasdaq under the ticker CURR. Revenue has declined by 18.14% over the last twelve months, and InvestingPro subscribers can access 8 additional key insights about the company’s financial health and market performance through the comprehensive Pro Research Report.

In other recent news, Currenc Group Inc. has reported significant developments impacting its operations and governance. The company completed a $54.6 million shares-for-debt transaction with its founder Alex Kong and Regal Planet Limited, eliminating related party debt. This strategic move involved issuing approximately 35.7 million ordinary shares to settle outstanding loans. Additionally, Alex Kong has returned as Chief Executive Officer following the resignation of Dr. Ronnie Hui, marking a leadership change at the fintech firm. In governance updates, Kevin Chen has been appointed as an independent director to the audit committee, bringing extensive experience from his roles at Horizon Financial and other financial institutions. Furthermore, Currenc Group has engaged Shareholder Intelligence Services, LLC to investigate potential naked short selling of its shares, aiming to protect shareholder value. These developments reflect the company’s ongoing efforts to strengthen its financial position and governance while addressing market challenges.

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