Initial focus includes NewGen’s expansion into UAE, with further growth initiatives to follow
BANGKOK, April 03, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced that it has secured $5.2 million in strategic funding through two separate arrangements with an investor (“the investor”), with the potential to raise a total of up to $30.8 million through the arrangements. These funding arrangements will provide the necessary capital for NewGen to execute on key growth initiatives, including the establishment of a state-of-the-art fertility clinic in Dubai, United Arab Emirates.
On April 2, 2025, the Company consummated the fourth tranche of its debt financing under the terms of its existing Securities Purchase Agreement with the investor, initially announced in a 6-K filed with the United States Securities and Exchange Commission (the “SEC”) on August 16, 2024. At the closing of the fourth tranche, the Company sold to the investor a senior convertible note in the principal amount of $2,000,000. The Note bears an interest rate of 14.75% per annum and may be adjustable from time to time pursuant to its terms.
On April 1, 2025, the Company entered into a new Securities Purchase Agreement with the investor pursuant to which the Company agreed to sell to the investor a senior convertible note in the aggregate original principal amount not exceeding $3,200,000. The Company may require the investor to participate in the sale of one or more additional convertible notes, which aggregate original principal amount for all additional convertible notes shall not exceed $25,600,000.
More details on these arrangements can be found in NewGen’s associated 6-K filing made with the SEC on April 3, 2025.
The funding from these arrangements will be used to finance the establishment of a fertility clinic in Dubai, which will leverage NewGen’s recently acquired exclusive Microsort technology to provide the Company with a solid operating foundation in the region. The UAE's fertility treatment regulatory framework allows for a comprehensive suite of services, including IVF with gender selection, egg donation, and surrogacy. The new clinic will serve patients from the UAE itself, residents from European Union countries seeking advanced fertility treatments, and patients from neighboring regions, particularly India, where there is substantial demand for family balancing services. Dubai's position as a global travel hub makes it an ideal location for international patients seeking world-class fertility care. NewGen expects construction of the facility to begin in the second quarter, with its opening targeted for the fourth quarter this year.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, “This strategic funding marks a significant milestone in our global expansion strategy and provides the liquidity we need to drive our long-term growth. The UAE's progressive regulatory environment for fertility treatments allows us to offer a full suite of services, making it an ideal region for the next step of our expansion efforts. By capitalizing on our recently acquired Microsort technology, we plan to establish a strong presence in Dubai, which we hope will serve as a hub to reach patients from a variety of regions. This expansion represents a pivotal step in our commitment to providing world-class fertility solutions to patients around the world.”
About NewGen NewGen is a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments. With a mission to aid couples and individuals in building families regardless of fertility challenges, NewGen has dedicated itself to creating increased access to infertility treatment and providing comprehensive fertility services for its customers. NewGen’s management team collectively has over a decade of experience in the fertility industry. NewGen’s clinics are located in Thailand, Cambodia, and Kyrgyzstan, and present a full suite of services for its patients, including comprehensive infertility and assisted reproductive technology treatments, egg and sperm donation, and surrogacy, in the appropriate jurisdictions, respectively. To learn more, visit www.newgenivf.com. The information contained on, or accessible through, NewGen’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.
Forward-Looking Statements This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations, investments, business strategy, and financial condition. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s ability to establish a fertility clinic in Dubai, its ability to attract international customers to the facility, or the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s annual report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Copies of these documents are available on the SEC’s website, www.sec.gov. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact ICR, LLC Robin Yang Phone: +1 (212) 537-4406 Email: Newgenivf.IR@icrinc.com
