NextPlay Technologies, Inc. (NASDAQ: NXTP) has announced the execution of a convertible loan agreement, termed “NextBank Convert,” with an investor, resulting in proceeds of US $2 billion, as outlined in the company’s 8-K filing on January 22, 2024.
Notably, this loan is non-convertible into NXTP shares and will not impact the current 5.9 million shares issued and outstanding of NXTP.
The loan is designed to be convertible into common shares of NextBank International, Inc., (“NextBank”), the Company’s wholly-owned banking subsidiary, at a conversion price that would value NextBank at US $65 million.
The conversion is contingent upon approval from NextBank’s Regulator, and there is no assurance that the deal will successfully close.
It is essential to highlight that the NextBank Convert will be secured solely by NextBank shares and will not involve shares of any other subsidiaries or affiliates, nor will it be tied to any specific assets or liabilities of the Company.
About NextPlay Technologies:
NextPlay Technologies, Inc. (Nasdaq: NXTP) is a technology solutions company that offers games, in-game advertising, digital banking, and crypto-banking services within a growing global digital ecosystem.
The company leverages innovative AdTech, Artificial Intelligence, and Fintech solutions to enhance its existing and acquired technologies.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the safe harbor provided by the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements express the Company’s current expectations, opinions, beliefs, or forecasts regarding future events and performance.
While the Company believes these statements are reasonable, they involve risks and uncertainties that may cause actual future activities and results to differ materially.
Factors contributing to such differences include but are not limited to, the need for additional capital, regulatory compliance, market competition, and the volatility of digital currency values.
More information on these risks and uncertainties can be found in the Company’s periodic reports filed with the SEC.
The company does not undertake any obligation to update or correct its forward-looking statements unless required by law. Investors are cautioned that forward-looking statements are not guarantees of future performance.
