NAGA Group Raises $8M Strategic Investment from Presto and MDream

Hamburg-based fintech group The NAGA Group AG (ETR:N4G0) has secured USD 8 million in strategic investment from institutional investors Presto and MDream through a convertible bond private placement. The investment is intended to support product development, strengthen NAGA's trading and digital-asset offering, and provide additional financial flexibility to capture growth opportunities, according to the company.

The convertible bond has a term of 36 months, carries an annual coupon of 8.0%, and is convertible into newly issued NAGA shares at a conversion price of USD 4.2615. This corresponds to a pre-money valuation of approximately USD 99.2 million and a premium of approximately 57% over the XETRA closing price of the NAGA share on 8 October 2026. Full conversion at the initial conversion price would increase NAGA's share capital by up to approximately 8.1%.

Presto, a quantitative trading and financial services firm founded in 2014, brings expertise in quantitative research, execution, risk management, and trading infrastructure. NAGA and Presto intend to cooperate on developing new trading products and enhancing pricing and trading conditions, execution, risk management, and trading infrastructure. MDream has a track record across the fintech ecosystem, including investments in payments, trading platforms, and digital wallets. The cooperation with MDream is intended to support the further development of NAGA's offering and its ambition to bring centralized and decentralized finance closer together within its multi-asset ecosystem.

If NAGA does not achieve consolidated revenues of at least USD 75.0 million and operating cash flow of at least USD 13.5 million in the period from the 13th to the 24th month after issuance, the noteholders may elect either repayment or conversion at a reduced conversion price of USD 1.50, corresponding to a pre-money valuation of USD 35.0 million. If a conversion at the reduced conversion price cannot be implemented for legal reasons, the company may exchange the convertible bond for a new convertible bond or repay it. Upon a change of control, the noteholders have a conversion and repayment right. The terms and conditions contain customary anti-dilution provisions.

Upon full conversion at the reduced conversion price of USD 1.50, the share capital would increase by up to EUR 5,333,333, corresponding to approximately 22.9% of the current share capital. In connection with the transaction, CEO Octavian Patrașcu has undertaken to transfer to the investors, free of charge, up to 762,742 shares of the company from his own holdings in the event of a conversion at the reduced conversion price. The investors are further entitled, following a conversion, to nominate a candidate for election to the company's Supervisory Board.

Octavian Patrascu, CEO of The NAGA Group, said that NAGA has been fundamentally transformed into a leaner, more efficient and profitable business, and that the next step is to build on this foundation and accelerate growth. He added that Presto and MDream bring both capital and expertise in areas central to NAGA's further development, providing additional financial flexibility and strengthening the company's ability to develop its offering and capture growth opportunities across trading and digital assets.

NAGA is a publicly listed German fintech group operating a multi-asset SuperApp that unifies trading, stock and ETF investing, crypto, social trading, and neo-banking. The platform serves over 2.5 million registered users across more than 100 countries, supported by 10 local offices and multiple regulatory licenses.