Business
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
Use of proceeds intended to accelerate growth strategy Singapore, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Webuy Global Ltd. (Nasdaq: WBUY) (“Webuy” or the
About this update from Webuy Global Ltd.
[{"type":"text","content":"Use of proceeds intended to accelerate growth strategy\nSingapore, 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 $2 million, and up to an additional $4 million with an accredited institutional investor (the “Investor”) upon mutual agreement. The initial conversion price of the Convertible Security is $0.213 per share, or 150% of the VWAP of the Class A ordinary shares on the trading day preceding the Note issuance. The notes bear zero interest with monthly payments to be made in either cash or stock at the Company’s option. Additional details regarding the terms of the Convertible Security are available in the Company’s Form 6-K, which has been filed with the Securities & Exchange Commission. 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 ...