Bango PLC Loan Agreement and Related Party Transaction (9662D)
June 27 2023 - 1:00AM
UK Regulatory
TIDMBGO
RNS Number : 9662D
Bango PLC
27 June 2023
Bango PLC
("Bango")
Loan Agreement and Related Party Transaction
Cambridge, UK, 27 June 2023 - Bango (AIM: BGO), the global
platform for data-driven commerce, announces that it has entered
into a 3-year loan agreement with NHN Corporation ("NHN") for 10.4
Billion Korean Won, equivalent to approximately USD8M (the
"Agreement").
The offer of a loan by NHN (the "NHN Loan") was referred to in
the announcement of the acquisition of DOCOMO Digital on 30 August
2022. The funds strengthen the balance sheet while the integration
completes. This is expected to assist Bango in closing further
multi-year SaaS contract wins with large customers for its Digital
Vending Machine "DVM" technology. Part of the additional liquidity
provided through this Agreement will also enable Bango to realize
additional synergies that are expected to produce increased EBITDA
- net of lending costs - in 2024 and beyond.
The loan carries a fixed annual interest rate of 6 per cent with
repayment in eight quarterly instalments commencing in September
2024, or earlier if Bango chooses. There is no early repayment
penalty and the loan is unsecured with no arrangement fees. In
connection with the Agreement, NHN has been granted 314,380 5-year
warrants to purchase new ordinary shares in Bango at 202p each (the
average closing share price over the 30 trading days preceding the
agreement) ("Warrants"). Full exercise of these Warrants would
equate to 0.4% dilution of Bango current issued share capital.
Bango CEO, Paul Larbey, commented : "As set out in our
announcement of last year's transformational deal, I am pleased
that Bango is able to apply additional capital to progress the
integration of DOCOMO Digital. The stronger balance sheet will
assist in landing the next wave of major customers for our
market-leading Digital Vending Machine technology. We have made
excellent progress this year, and I look forward to updating
shareholders in July on the first half's trading".
Related Party Transaction
NHN is a substantial shareholder of Bango and, accordingly, the
Agreement is classified as a related party transaction pursuant to
the AIM Rules for Companies. The directors of Bango (all of which
are independent of the Transaction) having consulted with Singer
Capital Markets, the Nominated Adviser for Bango, consider that the
terms of the Agreement are fair and reasonable insofar as Bango
shareholders are concerned.
Contact Details:
Bango PLC Singer Capital Markets Stifel Nicolaus Europe
(Nominated Adviser Limited (Joint Broker)
and Joint Broker)
+44 1223 617 387 +44 20 7496 3000 +44 20 7710 7600
investors@bango.com
Paul Larbey, CEO Harry Gooden Nick Adams
Matt Garner, CFO Jen Boorer Alex Price
Anil Malhotra, CMO Asha Chotai Ben Burnett
Rebecca Jamieson,
IR
About Bango
The world's largest online merchants, including Amazon (NASDAQ:
AMZN), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), use
Bango technology to acquire more paying users.
Bango has developed unique purchase behavior technology that
enables millions more users to buy the products and services they
want, using innovative methods of payment including carrier
billing, digital wallets and subscription bundling. Bango harnesses
this purchase activity into valuable marketing segments, called
Bango Audiences. Merchants use these audiences to target their
marketing at paying customers based on their purchase behavior.
Better targeting increases spend through the Bango payments
business, in turn generating more data insights, creating a
powerful virtuous circle that drives continuous growth. Everyone
connected to the Bango Platform thrives as the virtuous circle
grows.
Bango, the technology behind every payment choice. For more
information, visit www.bangoinvestor.com
END
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCSEDFAMEDSELM
(END) Dow Jones Newswires
June 27, 2023 02:00 ET (06:00 GMT)
Bango (LSE:BGO)
Historical Stock Chart
From Apr 2024 to May 2024
Bango (LSE:BGO)
Historical Stock Chart
From May 2023 to May 2024