REG - Bango PLC - Loan Agreement and Related Party Transaction

BangoAnnouncement

27/06/2023 07:15

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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 (Nominated Adviser and Joint Broker)       Stifel Nicolaus Europe Limited (Joint Broker)
 +44 1223 617 387                                  +44 20 7496 3000                                                  +44 20 7710 7600
 investors@bango.com (mailto: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 (http://www.bangoinvestor.com/)

 

END

 

 

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