UPDATE – Currenc Group's Founder and Executive Chairman to Convert $54.6 Million in Loans to Equity

Rhea-AI Summary

Currenc Group (Nasdaq: CURR) announced a significant $54.6 million Shares-for-Debt Transaction with its Founder and Executive Chairman, Alex Kong, and controlling shareholder Regal Planet Limited. The company will issue 35,653,995 ordinary shares at $1.53 per share to settle outstanding related party loans totaling approximately $54.55 million.

The transaction will completely eliminate the debt owed to Kong and Regal Planet from Currenc's balance sheet. The conversion price of $1.53 per share was based on Nasdaq's closing price prior to the agreement. The shares will be issued under Securities Act exemption and are subject to resale restrictions.

Positive

• Complete elimination of $54.55 million in related party debt from balance sheet
• Strong vote of confidence from Executive Chairman through $54.6M debt-to-equity conversion
• Significant strengthening of company's capital structure
• Strategic alignment of Chairman's interests with shareholders through increased equity stake

Negative

• 35.65 million new shares issuance will result in dilution for existing shareholders
• Shares issued are subject to resale restrictions which may impact liquidity

Insights

Financial Restructuring Specialist

Chairman's $54.6M debt-to-equity conversion eliminates related party debt, strengthens balance sheet, and signals strong insider confidence.

This $54.6 million debt-to-equity conversion represents a significant financial restructuring for Currenc Group. By converting loans to 35,653,995 ordinary shares at $1.53 per share, the company completely eliminates related party debt from its balance sheet. This transaction immediately improves Currenc's debt-to-equity ratio and enhances its financial flexibility.

The timing of this move is particularly telling - it comes at a critical juncture when technology companies are under heightened scrutiny regarding their capital structures and sustainability. By removing this substantial liability, Currenc gains stronger positioning for potential future financing activities, whether through debt or equity channels.

What makes this transaction especially noteworthy is that it represents a substantial insider commitment. When controlling shareholders convert debt to equity at market price (not at a discount), it typically signals strong confidence in the company's future prospects. Mr. Kong is effectively increasing his equity stake and further aligning his financial interests with those of other shareholders, while simultaneously strengthening the company's financial foundation.

The structure of the transaction - using the official Nasdaq closing price immediately prior to execution - demonstrates transparency in the valuation methodology. This fairness in pricing helps mitigate potential concerns about related party transactions that might otherwise benefit insiders at the expense of minority shareholders.

For investors, this restructuring sends a clear signal about management's confidence in long-term value creation, while immediately improving the company's financial flexibility and capital structure.

Strengthening Capital Structure and Signaling Confidence in Growth

SINGAPORE, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Currenc Group Inc. (Nasdaq: CURR) (“Currenc” or the “Company”), a fintech pioneer empowering financial institutions worldwide with artificial intelligence (AI) solutions, today announced that it has entered into definitive transaction documents to effect a $54.6 million Shares-for-Debt Transaction with its Founder and Executive Chairman, Mr. Alex Kong, and Regal Planet Limited (“Regal Planet”), the Company’s controlling shareholder, which is also controlled by Mr. Kong.

Under the terms of the definitive transaction documents, the Company will issue an aggregate of 35,653,995 ordinary shares at a price per share equal to $1.53, which was the official Nasdaq closing price as of immediately prior to the execution of the definitive transaction documents, to Mr. Kong and Regal Planet to settle in full the current outstanding related party loans, which total approximately $54,550,612.30, based on the updated balance as of July 22, 2025. This move will completely eliminate the debt owed to Mr. Kong and Regal Planet, which originated under various loan agreements between Currenc and its subsidiaries, Mr. Kong, and Regal Planet, from the Company’s balance sheet, powerfully aligning the Chairman’s interests with those of all shareholders.

“This transaction achieves two critical goals: it significantly strengthens our capital structure, and just as importantly, underscores my profound confidence in Currenc’s long-term growth prospects,” said Mr. Kong. “By personally reinvesting over $54 million of loans into equity, I am doubling down on the shared vision I hold with our management, employees, and fellow shareholders, and sharpening our focus on executing our mission to empower financial institutions globally with our AI-driven solutions.”

The issuance of shares will be made in reliance on an exemption from registration under the Securities Act of 1933, as amended, and the shares issued are subject to applicable restrictions on resale.

About Currenc Group Inc.
Currenc Group Inc. (Nasdaq: CURR) is a fintech pioneer dedicated to transforming global financial services through artificial intelligence (AI). The Company empowers financial institutions worldwide with comprehensive AI solutions, including SEAMLESS AI Call Centre and other AI-powered Agents designed to reduce costs, increase efficiency and boost customer satisfaction for banks, insurance, telecommunications companies, government agencies and other financial institutions. The Company’s digital remittance platform also enables e-wallets, remittance companies, and corporations to provide real-time, 24/7 global payment services, advancing financial access across underserved communities.

Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor & Media Contact
Currenc Group Investor Relations
Email: investors@currencgroup.com

SOURCE: Currenc Group Inc.

FAQ

What is the value of Currenc Group's (CURR) debt-to-equity conversion announced in August 2025?

Currenc Group announced a $54.6 million debt-to-equity conversion, where Executive Chairman Alex Kong and Regal Planet will convert their loans into 35,653,995 ordinary shares at $1.53 per share.

How many new shares will Currenc Group (CURR) issue for the debt conversion?

Currenc Group will issue 35,653,995 ordinary shares at a price of $1.53 per share to settle the $54.55 million in related party loans.

What is the conversion price for Currenc Group's (CURR) debt-to-equity transaction?

The conversion price is $1.53 per share, which was the official Nasdaq closing price immediately prior to the execution of the definitive transaction documents.

How will the debt conversion affect Currenc Group's (CURR) balance sheet?

The transaction will completely eliminate approximately $54.55 million in related party debt from Currenc Group's balance sheet, significantly strengthening its capital structure.

Who are the parties involved in Currenc Group's (CURR) debt conversion transaction?

The transaction involves Founder and Executive Chairman Alex Kong and Regal Planet Limited (the controlling shareholder also controlled by Kong) converting their loans to equity.