Bango PLC (AIM:BGO, OTCQX:BGOPF) said it has entered into a three-year loan deal with Korean firm NHN Corporation, as part of the payment technology group’s integration of the DOCOMO Digital business, providing the equivalent of US$8 million of capital for the venture.
The company acquired DOCOMO just under a year ago, in August 2022, in what was described as a transformational deal.
Through DOCOMO, the former payments platform of Japanese telco NTT DOCOMO, AIM-quoted Bango is presently said to be closing multi-year contracts with large customers, for its Digital Vending Machine (DVM) technology.
The loan announced today was previously noted amongst details of the company’s plans as it unveiled the DOCOMO deal last year.
Bango is borrowing up to 10.4 billion Korean Won from NHN Corporation. The facility carries interest at 6%, and, is repayable across eight quarterly instalments beginning in September 2024 – or earlier, at Bango’s choice and there are no early repayment penalties.
“I am pleased that Bango is able to apply additional capital to progress the integration of DOCOMO Digital,” said Bango chief executive Paul Larbey in a statement.
“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," he added.
NHN will also receive five-year share warrants, exercisable at 202p per share, which could result in the Korean lender taking a shareholding of some 314,380 shares in Bango.