Nexway responds to adverse market conditions caused by COVID-19 pandemic
March 20, 2020, Karlsruhe – Nexway AG, a Karlsruhe-based ecommerce services company listed on the Frankfurt Stock Exchange (Ticker: NWAY, ISIN: DE000A2E3707), is responding to adverse market conditions caused by COVID-19 virus pandemic with a variety of measures.
Even though effects caused by the current market situation have not yet been fully occurred or recorded at this time, the Nexway management has decided to immediately focus all business and financial planning on an effective contingency planning that takes into account possible fundamental impact on the business and financial situation in the company’s business units.
In this context Nexway AG has completed corporate reorganization and comprehensive debt refinancing aimed to support the working capital of the group, with specifically: (i) Facebank Group Inc transferred 62% ownership interest in Nexway AG into its Luxembourg’s financing vehicle FBNK Finance SarL, (ii) FBNK Finance SarL arranged for repayment of all bonds issued by the French subsidiary Nexway SAS (with no bonds outstanding as of today), and (iii) Nexway AG pledged 100% of the shares in Nexway Group AG, it’s Swiss subsidiary as the part of the debt refinancing arrangements described above.
In addition, all business activities are being put under strategic review and necessary measures and decisions will be taken in the coming weeks. The focus will have to be squarely shifted to profitable economic activity going forward. Immediate measures currently being reviewed are aimed at ensuring liquidity and cashflow by reducing costs and liabilities on the operational level.
To weather the current adverse economic conditions, Nexway will seek to apply for financial assistance from German and French governments, specifically with regards to access additional liquidity as well as in the matters pertinent to staff support and protection of employees.
Victor Iezuitov, CEO of Nexway AG: “In view of the anticipated significant consequences of the Corona crisis, it is our responsibility to fundamentally revise the business strategy of our group and to take measures to protect our company and our employees. We expect to decide the individual steps we will take in the first weeks of April and will do so in close cooperation and consultations with the authorities of the countries we operate in.”
Having proactively suspended travel and implemented the policies of social distancing, Nexway management also mandated home working for a period of two weeks commencing on March 16th. This decision is primarily dictated by the concern for the health and wellbeing of the Nexway staff and the strong will to maintain the highest level of service for partners and clients, with further measures to be announced and effected as required and recommended by the authorities.
ABOUT NEXWAY
Nexway AG (formerly asknet AG, www.nexway.com) is a leading e-commerce and payment player, the group combines technology and managed services, and offers solutions to software, video games, services and retail companies to run and maximize their online sales worldwide. Nexway clients leverage subscription models, local payment methods, fraud prevention, partner & reseller management and customer insights to transform their purchasing experience and grow their business. The company also provides software procurement and distribution services to European academic institutions, students and alumni. The company is based in Karlsruhe and listed on the Frankfurt Stock exchange (Ticker: NWAY, ISIN: DE000A2E3707).
Media Contact
media@nexway.com
