NewGenIvf Group secures $5.2M in funding to drive international expansion

NewGenIvf Group (NIVF) has secured $5.2M in strategic funding through two separate arrangements with an investor, with the potential to raise a total of up to $30.8M 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, 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 on August 16. 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, 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. 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.