Webuy Secures $2 Million Debt Financing Convertible at a Premium to the Current Market Price; Potential to Receive an Additional $4.0 Million Upon Mutual Agreement of the Parties
Webuy Global (Nasdaq: WBUY), a Southeast Asian community e-commerce retailer, has secured $2 million in senior convertible debt financing with potential for an additional $4 million. The initial conversion price is set at $0.213 per share, representing a 150% premium to the current market price. The notes bear zero interest with monthly payments in cash or stock at the company's discretion.
CEO Vincent Xue Bin stated that this investment demonstrates confidence in Webuy's business model and growth potential. The company plans to use the funds to accelerate its expansion strategy and roll out new products and services across Southeast Asia. Webuy believes its projected cash flow will enable repayment of a significant portion of the amortization payments in cash, potentially minimizing shareholder dilution.
Webuy Global (Nasdaq: WBUY), un rivenditore di e-commerce della comunità del Sud-est asiatico, ha ottenuto un finanziamento di 2 milioni di dollari in debito convertibile senior con un potenziale di ulteriori 4 milioni di dollari. Il prezzo di conversione iniziale è fissato a 0,213 dollari per azione, corrispondente a un premio del 150% rispetto al prezzo di mercato attuale. Le obbligazioni non producono interessi e prevedono pagamenti mensili in contante o in azioni a discrezione dell'azienda.
Il CEO Vincent Xue Bin ha affermato che questo investimento dimostra fiducia nel modello di business e nel potenziale di crescita di Webuy. L'azienda prevede di utilizzare i fondi per accelerare la sua strategia di espansione e lanciare nuovi prodotti e servizi in tutto il Sud-est asiatico. Webuy crede che il flusso di cassa previsto le consentirà di rimborsare una parte significativa dei pagamenti di ammortamento in contante, riducendo potenzialmente la diluizione degli azionisti.
Webuy Global (Nasdaq: WBUY), un minorista de comercio electrónico de la comunidad del sudeste asiático, ha asegurado 2 millones de dólares en deuda convertible senior con un potencial adicional de 4 millones de dólares. El precio de conversión inicial se establece en 0,213 dólares por acción, lo que representa una prima del 150% sobre el precio de mercado actual. Las notas no generan intereses y prevén pagos mensuales en efectivo o en acciones a discreción de la empresa.
El CEO Vincent Xue Bin declaró que esta inversión demuestra confianza en el modelo de negocio y el potencial de crecimiento de Webuy. La empresa planea utilizar los fondos para acelerar su estrategia de expansión y lanzar nuevos productos y servicios en todo el sudeste asiático. Webuy cree que su flujo de caja proyectado le permitirá reembolsar una parte significativa de los pagos de amortización en efectivo, lo que podría minimizar la dilución de los accionistas.
Webuy Global (Nasdaq: WBUY), 동남아시아 지역의 커뮤니티 전자상거래 소매업체,는 200만 달러의 전환 가능 선순환 채무 자금을 확보하였고, 추가로 400만 달러를 확보할 가능성이 있습니다. 초기 전환 가격은 주당 0.213달러로 설정되며, 이는 현재 시장 가격에 비해 150%의 프리미엄을 나타냅니다. 이 노트는 이자가 없으며 회사의 재량에 따라 현금 또는 주식으로 매달 지급됩니다.
CEO 빈 빈 수에 따르면, 이번 투자는 Webuy의 비즈니스 모델과 성장 가능성에 대한 신뢰를 보여줍니다. 이 회사는 자금을 사용하여 확장 전략을 가속화하고 동남아시아 전역에 새로운 제품과 서비스를 출시할 계획입니다. Webuy는 예상되는 현금 흐름이 상당 부분의 상환을 현금으로 가능하게 할 것이며, 주주 희석을 최소화할 수 있을 것으로 믿고 있습니다.
Webuy Global (Nasdaq: WBUY), un détaillant de commerce électronique communautaire d'Asie du Sud-Est, a sécurisé 2 millions de dollars en dette convertible senior avec un potentiel supplémentaire de 4 millions de dollars. Le prix de conversion initial est fixé à 0,213 dollar par action, représentant une prime de 150 % par rapport au prix du marché actuel. Les obligations ne portent aucun intérêt et prévoient des paiements mensuels en espèces ou en actions à la discrétion de l'entreprise.
Le PDG Vincent Xue Bin a déclaré que cet investissement démontre la confiance dans le modèle économique et le potentiel de croissance de Webuy. L'entreprise prévoit d'utiliser les fonds pour accélérer sa stratégie d'expansion et déployer de nouveaux produits et services à travers l'Asie du Sud-Est. Webuy croit que son flux de trésorerie projeté permettra le remboursement d'une partie importante des paiements d'amortissement en espèces, ce qui pourrait minimiser la dilution des actionnaires.
Webuy Global (Nasdaq: WBUY), ein Einzelhändler für Community-E-Commerce in Südostasien, hat 2 Millionen Dollar in nachrangiger wandelbarer Schulden Finanzierung gesichert, mit der Möglichkeit, zusätzliche 4 Millionen Dollar zu erhalten. Der anfängliche Umwandlungspreis liegt bei 0,213 Dollar pro Aktie, was einem Aufschlag von 150 % auf den derzeitigen Marktpreis entspricht. Die Anleihen tragen keine Zinsen und sehen monatliche Zahlungen in bar oder in Aktien nach eigenem Ermessen des Unternehmens vor.
CEO Vincent Xue Bin erklärte, dass diese Investition Vertrauen in das Geschäftsmodell und das Wachstumspotenzial von Webuy zeigt. Das Unternehmen plant, die Mittel zur Beschleunigung seiner Expansionsstrategie und zur Einführung neuer Produkte und Dienstleistungen in ganz Südostasien zu nutzen. Webuy ist der Meinung, dass der projected cash flow die Rückzahlung eines erheblichen Teils der Amortisationszahlungen in bar ermöglichen wird, was potenziell die Verwässerung der Aktionäre minimieren könnte.
- Secured $2 million in convertible debt financing with potential for additional $4 million
- Initial conversion price set at 150% premium to current market price
- Zero interest on the convertible notes
- Flexibility to make monthly payments in cash or stock
- Funds to be used for accelerating expansion strategy and new product rollout
- Potential dilution of shareholder value if payments are made in stock
Insights
Webuy's
However, investors should note that while the company projects ability to repay in cash, any stock-based payments could lead to dilution. The premium conversion price of
This financing strategy allows Webuy to fund growth without immediate equity dilution, but the company's ability to generate sufficient cash flow to meet repayment obligations will be important to watch.
Webuy's move to secure convertible debt financing aligns with its expansion strategy in the competitive Southeast Asian e-commerce market. The company's plan to roll out new products and services suggests a proactive approach to capturing market share.
The e-commerce landscape in Southeast Asia is rapidly evolving, with a projected market value of
Investors should closely monitor Webuy's user acquisition costs, retention rates and the performance of new product launches to gauge the effectiveness of this capital deployment in driving sustainable growth.
Use of proceeds intended to accelerate growth strategy
Singapore, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Webuy Global Ltd. (Nasdaq: WBUY) (“Webuy” or the “Company”), a Southeast Asian community e-commerce retailer, today announced it has entered into a definitive agreement for senior convertible debt (“Convertible Security”) with an initial principal amount of
Vincent Xue Bin, Chief Executive Officer and Co-Founder of Webuy, stated, “We believe Webuy’s ability to obtain this type of institutional investment and the favorable terms, convertible at a premium to the current market price, demonstrate confidence in our business model and growth potential. Moreover, we believe our projected cash flow will enable us to repay all or a material portion of the amortization payments in cash, which would allow us to minimize dilution and maximize value for shareholders. This capital infusion is extremely timely as it enables us to accelerate our expansion strategy, particularly as we prepare to roll out a series of exciting new products and services throughout Southeast Asia. We look forward to providing further details on these latest initiatives in the weeks and months ahead.”
About Webuy Global Ltd
Webuy Global Ltd (Nasdaq: WBUY) is an innovative, technology-focused company with a goal of building the most trusted retail brand and advanced e-commerce platform in Southeast Asia, designed to leverage data in order to provide a community-driven experience for consumers. The Company's unique 'group buy' business model is set to revolutionize traditional shopping practices, by offering substantial cost savings to customers through an efficient purchasing model and community-centric approach. Akin to group purchases and bulk orders, this approach simplifies the process for customers, eliminating the need for individual bulk purchases. Furthermore, the Company’s business model streamlines the traditional supply chain by minimizing the involvement of intermediaries, thereby offering a more direct "farm-to-table" supply model. The Company’s vision is to enable the ten million families in Southeast Asia to live a healthier, higher-quality lifestyle. Additional information about the Company is available at http://webuy.global/
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company’s registration statement on Form F-1 related to the public offering (SEC File No. File No. 333-271604) and annual report on Form 20-F. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
FAQ
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