NewGenIvf Group Limited (NASDAQ: NIVF ) shares are trading higher premarket on Monday after the company inked a binding term sheet with White Lion Capital for a $100 million equity line of credit, expandable to $500 million .
As per the term sheet, NewGen can sell up to $100 million in common stock to White Lion over an initial 36-month period.
The amount can increase to $300 million following significant M&A activity and up to $500 million, once $250 million has been drawn.
The transactions are contingent on entering definitive agreements and meeting certain conditions, including filing a registration statement immediately upon execution of those agreements.
Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, said, ”The flexibility to draw capital at our discretion enables us to maintain our strong balance sheet while pursuing potential strategic acquisitions. Moreover, the 36-month term, extendable to 65 months, provides us with a long-term capital partner to support our growth initiatives.”
Last month, the company received a noncompliance letter from Nasdaq after failing to maintain a closing bid price of at least $1 per share for 30 consecutive business days .
Price Action : NIVF shares are up 69% at $1.10 premarket at the last check Monday.
Image via Shutterstock
Read Next :
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily , plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article NewGenIVF Locks In Long-Term Financing To Fuel Its Ambitions, Stock Jumps originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
NewGenIVF Group Limited has signed a binding term sheet with White Lion Capital for a $100 million equity line of credit, expandable to $500 million, to support its growth initiatives.
Last month, the company received a noncompliance letter from Nasdaq after failing to maintain a closing bid price of at least $1 per share for 30 consecutive business days.
NIVF shares are up 69% at $1.10 premarket, following the announcement of the equity line of credit agreement.
NewGen can sell up to $100 million in common stock to White Lion over an initial 36-month period, with the option to increase to $300 million following significant M&A activity and up to $500 million once $250 million has been drawn.
According to Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, the agreement provides the company with the flexibility to draw capital at its discretion, enabling it to maintain a strong balance sheet while pursuing potential strategic acquisitions.