NewGen Secures Strategic Funding to Drive International Expansion and Corporate Growth
NewGen (NASDAQ: NIVF) has secured $5.2 million in strategic funding through two arrangements, with potential to raise up to $30.8 million total. The funding includes a $2 million senior convertible note with 14.75% annual interest rate and a new agreement for up to $3.2 million, with possibility for additional notes up to $25.6 million.
The capital will primarily fund the establishment of a state-of-the-art fertility clinic in Dubai, UAE, leveraging NewGen's exclusive Microsort technology. The Dubai facility will offer comprehensive fertility services including IVF with gender selection, egg donation, and surrogacy, targeting patients from UAE, European Union, and neighboring regions, particularly India.
Construction is scheduled to begin in Q2 2025, with facility opening targeted for Q4 2025. The expansion capitalizes on Dubai's position as a global travel hub and the UAE's progressive fertility treatment regulatory framework.
NewGen (NASDAQ: NIVF) ha ottenuto 5,2 milioni di dollari in finanziamenti strategici attraverso due accordi, con la possibilità di raccogliere fino a 30,8 milioni di dollari in totale. Il finanziamento include un'obbligazione convertibile senior da 2 milioni di dollari con un tasso d'interesse annuale del 14,75% e un nuovo accordo per un massimo di 3,2 milioni di dollari, con possibilità di ulteriori obbligazioni fino a 25,6 milioni di dollari.
Il capitale finanzierà principalmente l'istituzione di una clinica per la fertilità all'avanguardia a Dubai, UAE, sfruttando la tecnologia esclusiva Microsort di NewGen. La struttura di Dubai offrirà servizi completi per la fertilità, inclusi IVF con selezione del genere, donazione di ovuli e surrogacy, mirando a pazienti provenienti dagli UAE, dall'Unione Europea e dalle regioni vicine, in particolare dall'India.
I lavori di costruzione sono previsti per iniziare nel secondo trimestre del 2025, con l'apertura della struttura prevista per il quarto trimestre del 2025. L'espansione capitalizza sulla posizione di Dubai come hub globale dei viaggi e sul quadro normativo progressista degli UAE per i trattamenti di fertilità.
NewGen (NASDAQ: NIVF) ha conseguido 5,2 millones de dólares en financiación estratégica a través de dos acuerdos, con el potencial de recaudar hasta 30,8 millones de dólares en total. La financiación incluye un pagaré convertible senior de 2 millones de dólares con una tasa de interés anual del 14,75% y un nuevo acuerdo por hasta 3,2 millones de dólares, con posibilidad de notas adicionales de hasta 25,6 millones de dólares.
El capital financiará principalmente el establecimiento de una clínica de fertilidad de última generación en Dubái, Emiratos Árabes Unidos, aprovechando la tecnología exclusiva Microsort de NewGen. La instalación en Dubái ofrecerá servicios integrales de fertilidad, incluidos IVF con selección de género, donación de óvulos y gestación subrogada, dirigido a pacientes de los EAU, la Unión Europea y regiones vecinas, especialmente India.
La construcción está programada para comenzar en el segundo trimestre de 2025, con la apertura de la instalación prevista para el cuarto trimestre de 2025. La expansión capitaliza la posición de Dubái como un centro global de viajes y el marco regulatorio progresista de los EAU para tratamientos de fertilidad.
NewGen (NASDAQ: NIVF)는 두 가지 계약을 통해 520만 달러의 전략적 자금을 확보했으며, 총 3080만 달러까지 모금할 가능성이 있습니다. 이 자금에는 연 14.75%의 이자율이 적용되는 200만 달러의 선순위 전환사채와 최대 320만 달러의 새로운 계약이 포함되어 있으며, 추가로 최대 2560만 달러의 사채 가능성이 있습니다.
이 자본은 주로 아랍에미리트 두바이에 첨단 생식 클리닉을 설립하는 데 사용되며, NewGen의 독점 Microsort 기술을 활용합니다. 두바이 시설은 성별 선택이 가능한 IVF, 난자 기증 및 대리모 서비스를 포함한 종합적인 생식 서비스를 제공하며, UAE, 유럽 연합 및 인도와 같은 인근 지역의 환자를 대상으로 합니다.
건설은 2025년 2분기에 시작될 예정이며, 시설 개장은 2025년 4분기로 목표하고 있습니다. 이 확장은 두바이가 글로벌 여행 허브로서의 위치와 아랍에미리트의 진보적인 생식 치료 규제 프레임워크를 활용합니다.
NewGen (NASDAQ: NIVF) a sécurisé 5,2 millions de dollars de financement stratégique à travers deux accords, avec un potentiel de levée de fonds total allant jusqu'à 30,8 millions de dollars. Le financement comprend une note convertible senior de 2 millions de dollars avec un taux d'intérêt annuel de 14,75 % et un nouvel accord pour un maximum de 3,2 millions de dollars, avec la possibilité de notes supplémentaires allant jusqu'à 25,6 millions de dollars.
Le capital financera principalement l'établissement d'une clinique de fertilité à la pointe de la technologie à Dubaï, Émirats Arabes Unis, tirant parti de la technologie exclusive Microsort de NewGen. L'établissement de Dubaï proposera des services de fertilité complets, y compris la FIV avec sélection du sexe, le don d'ovules et la gestation pour autrui, visant des patients des ÉAU, de l'Union Européenne et des régions voisines, en particulier l'Inde.
La construction est prévue pour commencer au deuxième trimestre 2025, avec une ouverture de l'établissement prévue pour le quatrième trimestre 2025. L'expansion tire parti de la position de Dubaï en tant que plaque tournante mondiale du voyage et du cadre réglementaire progressiste des ÉAU en matière de traitement de la fertilité.
NewGen (NASDAQ: NIVF) hat 5,2 Millionen Dollar an strategischer Finanzierung durch zwei Vereinbarungen gesichert, mit dem Potenzial, insgesamt bis zu 30,8 Millionen Dollar zu sammeln. Die Finanzierung umfasst eine 2-Millionen-Dollar Senior-Convertible-Note mit einem jährlichen Zinssatz von 14,75% und eine neue Vereinbarung über bis zu 3,2 Millionen Dollar, mit der Möglichkeit zusätzlicher Anleihen bis zu 25,6 Millionen Dollar.
Das Kapital wird hauptsächlich zur Finanzierung der Errichtung einer modernen Fertilitätsklinik in Dubai, VAE verwendet, die die exklusive Microsort-Technologie von NewGen nutzt. Die Einrichtung in Dubai wird umfassende Fertilitätsdienstleistungen anbieten, einschließlich IVF mit Geschlechtsauswahl, Eizellenspende und Leihmutterschaft, und richtet sich an Patienten aus den VAE, der Europäischen Union und benachbarten Regionen, insbesondere Indien.
Der Bau soll im 2. Quartal 2025 beginnen, mit einer Eröffnung der Einrichtung, die für das 4. Quartal 2025 angestrebt wird. Die Expansion nutzt Dubais Position als globales Reisezentrum und das fortschrittliche regulatorische Umfeld der VAE für Fertilitätsbehandlungen.
- Secured immediate funding of $5.2 million with potential to raise up to $30.8 million
- Expansion into UAE market with new Dubai fertility clinic
- Access to broader market including UAE, EU, and Indian patients
- Ability to offer comprehensive fertility services including gender selection
- Strategic location in Dubai as global travel hub
- High interest rate of 14.75% on convertible note
- Significant debt financing through convertible notes may lead to future dilution
- Substantial capital requirements for international expansion
Insights
NewGen's $5.2 million capital raise through convertible debt instruments represents a significant development for this micro-cap fertility services provider with its $3.16 million market capitalization. The funding structure consists of a $2 million senior convertible note at a 14.75% interest rate plus a new agreement for up to $3.2 million initially, with potential to secure additional notes up to $25.6 million.
The high interest rate signals considerable financing costs and reflects the premium investors demand from smaller-cap companies in the healthcare space. While providing essential capital for international expansion, the convertible feature introduces potential future dilution risk that existing shareholders should monitor closely. The disproportionate relationship between the company's current market capitalization and the potential $30.8 million in convertible debt raises questions about the dilutive impact and long-term capital structure.
However, the staged nature of the funding—with additional tranches contingent on meeting certain conditions—provides some safeguards by allowing investors to evaluate progress before committing additional capital. The Dubai expansion represents a capital-intensive but strategically sound deployment of these funds into a market with favorable regulations and potential for premium service offerings.
NewGen's planned expansion into Dubai represents a strategically calculated move to leverage regulatory arbitrage in the fertility treatment sector. The UAE market offers a uniquely permissive framework that allows NewGen to deliver its full suite of services—including IVF with gender selection, egg donation, and surrogacy—many of which face restrictions in other jurisdictions.
The Dubai location functions as both a regional and global hub, positioning NewGen to tap into patient flows from three distinct market segments: local UAE patients, European patients seeking treatments unavailable in their home countries due to regulatory restrictions, and neighboring regions with substantial demand for family balancing services, particularly India.
The integration of their recently acquired Microsort technology provides a differentiated service offering that can command premium pricing in this market. Dubai's established medical tourism infrastructure and global connectivity enhance the clinic's accessibility to international patients.
The aggressive timeline—beginning construction in Q2 with operations commencing in Q4—introduces execution risk but also indicates management's commitment to rapid market entry. This first-mover advantage could be significant in capturing market share in what appears to be a deliberate geographic expansion strategy that aligns with regions having favorable regulatory environments and strong demand for advanced fertility treatments.
Initial focus includes NewGen’s expansion into UAE, with further growth initiatives to follow
BANGKOK, April 03, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced that it has secured
On April 2, 2025, the Company consummated the fourth tranche of its debt financing under the terms of its existing Securities Purchase Agreement with the investor, initially announced in a 6-K filed with the United States Securities and Exchange Commission (the “SEC”) on August 16, 2024. At the closing of the fourth tranche, the Company sold to the investor a senior convertible note in the principal amount of
On April 1, 2025, the Company entered into a new Securities Purchase Agreement with the investor pursuant to which the Company agreed to sell to the investor a senior convertible note in the aggregate original principal amount not exceeding
More details on these arrangements can be found in NewGen’s associated 6-K filing made with the SEC on April 3, 2025.
The funding from these arrangements will be used to finance the establishment of a fertility clinic in Dubai, which will leverage NewGen’s recently acquired exclusive Microsort technology to provide the Company with a solid operating foundation in the region. The UAE's fertility treatment regulatory framework allows for a comprehensive suite of services, including IVF with gender selection, egg donation, and surrogacy. The new clinic will serve patients from the UAE itself, residents from European Union countries seeking advanced fertility treatments, and patients from neighboring regions, particularly India, where there is substantial demand for family balancing services. Dubai's position as a global travel hub makes it an ideal location for international patients seeking world-class fertility care. NewGen expects construction of the facility to begin in the second quarter, with its opening targeted for the fourth quarter this year.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, “This strategic funding marks a significant milestone in our global expansion strategy and provides the liquidity we need to drive our long-term growth. The UAE's progressive regulatory environment for fertility treatments allows us to offer a full suite of services, making it an ideal region for the next step of our expansion efforts. By capitalizing on our recently acquired Microsort technology, we plan to establish a strong presence in Dubai, which we hope will serve as a hub to reach patients from a variety of regions. This expansion represents a pivotal step in our commitment to providing world-class fertility solutions to patients around the world.”
About NewGen
NewGen is a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments. With a mission to aid couples and individuals in building families regardless of fertility challenges, NewGen has dedicated itself to creating increased access to infertility treatment and providing comprehensive fertility services for its customers. NewGen’s management team collectively has over a decade of experience in the fertility industry. NewGen’s clinics are located in Thailand, Cambodia, and Kyrgyzstan, and present a full suite of services for its patients, including comprehensive infertility and assisted reproductive technology treatments, egg and sperm donation, and surrogacy, in the appropriate jurisdictions, respectively. To learn more, visit www.newgenivf.com. The information contained on, or accessible through, NewGen’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.
Forward-Looking Statements
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. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations, investments, business strategy, and financial condition. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s ability to establish a fertility clinic in Dubai, its ability to attract international customers to the facility, or the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s annual report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Copies of these documents are available on the SEC’s website, www.sec.gov. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
ICR, LLC
Robin Yang
Phone: +1 (212) 537-4406
Email: Newgenivf.IR@icrinc.com
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