BANXA Holdings Inc (TSX-V:BNXA, OTCQX:BNXAF) announced that it has paid in full the final buyout amount of senior secured debt per a convertible security funding agreement with Lind Global Fund II using cash raised during a private placement.
The company said the buyout has strengthened and de-risked its capital structure by removing restrictive covenants, reducing the cost of capital for future financing and returning flexibility to the balance sheet.
It can now pursue capital at a lower cost to support its growth, it highlighted.
“I am extremely pleased for Banxa to have completed this buyout as it enables Banxa to be in control of its own destiny,” Banxa CEO Holger Arians said in a statement.
“Banxa is now well positioned for its next stage of growth. We fully expect for digital assets to keep growing, and Banxa is now in a stronger position to take advantage of the catalysts to come in 2024 and beyond.”
The company noted that its payments made total less than the face value of the funding agreement, being C$4.2 million.
It is now working through dissolving the funding agreement which it said will be completed once the general security over the company by Lind is removed with the appropriate security counsels in various jurisdictions.
Banxa powers the world’s largest digital asset platforms by providing payments infrastructure and regulatory compliance across global markets.
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