SINGAPORE - Webuy Global Ltd. (NASDAQ:WBUY), a Southeast Asian community e-commerce retailer, has secured a convertible debt agreement with an accredited institutional investor. The initial principal amount is set at $2 million, with the option to extend up to $6 million upon mutual agreement.
The convertible notes, which carry no interest, have a starting conversion price of $0.213 per share, reflecting a 150% premium over the volume-weighted average price (VWAP) of Webuy's Class A ordinary shares from the last trading day before the note issuance. Payments can be made monthly in either cash or stock at Webuy's discretion.
Vincent Xue Bin, CEO and Co-Founder of Webuy, expressed that the favorable terms of the investment signify investor confidence in the company's business model and growth prospects. He also indicated that Webuy's expected cash flow should enable the firm to repay the debt largely in cash, thus minimizing shareholder dilution and maximizing shareholder value.
The capital from this deal is intended to expedite Webuy's expansion strategy, particularly in launching new products and services in the Southeast Asian market. While further details on these initiatives are forthcoming, the company's 'group buy' business model aims to revolutionize conventional shopping by offering significant cost savings and a community-centric shopping experience.
Webuy's approach also seeks to streamline the traditional supply chain by reducing intermediary involvement, promoting a more direct supply model from producers to consumers.
The information provided here is based on a press release statement. Webuy's forward-looking statements in the release are subject to risks, uncertainties, and assumptions as detailed in the company's SEC filings, including its Form F-1 and annual report on Form 20-F. The company does not commit to updating the information except as required by law.
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