Novea Inc. closes $ 55 million financing for FinTech Jacana Warranty’s InsureTech platform

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LOS ANGELES, 20 December 2021 / PRNewswire / – Novea, Inc., (“Novea”) a financial technology (fintech) software company founded in 2015, today announced that it has closed $ 50 million in equity and $ 5 million debt financing. Proceeds from the capital will go to Novea’s wholly owned subsidiaries, Jacana Warranty and Jacana Insurance, to support a proprietary user application platform it has developed that is revolutionizing the warranty and consumer service contracts industry. The debt proceeds will support the overhead costs of the business.

The investment is provided by Newpoint Financial Group, based in Switzerland, a global diversified financial services company (“Newpoint”) with operations located throughout Europe, United States and West Africa. The investment was made through Newpoint’s US subsidiary, Newpoint Financial Corp.

In exchange for Newpoint $ 50 million An equity investment, Novea issued to Newpoint ten percent of its outstanding common shares and convertible redeemable preferred shares. The proceeds of the investment are used as statutory and solvency capital within Novea’s insurance division, Jacana Insurance, thus strengthening its balance sheet for its global insurance underwriting commitments. As part of the transaction, Newpoint also provided Novea with a $ 5 million, a five-year revolving line of credit that Novea can draw on and use for operational and corporate overhead expenses. In addition, Newpoint has obtained a warrant to purchase additional Novea common shares which may be exercised at Newpoint’s discretion for an amount of up to $ 50 million over the next ten years, which, if exercised in total, increases the value of the transaction to 105 million dollars. Other investment conditions include Newpoint having representation rights on the board of directors and risk committee, and Newpoint’s reinsurance company, Newpoint RE having first right of refusal on all Novea reinsurance business opportunities as well as other customary commitments and surveillance rights.

Jim quinlan, CEO of Novea said “We couldn’t have asked for a better financial and reinsurance partner than Newpoint Financial. With this funding, we are not only securing Novea’s take to the next level, but we are able to reward our existing long-term investors with a significant appreciation of their Novea shares as this transaction charges a $ 500 million Novea market value. Mr. Quinlan added, “Over the past two months we have entered into several new customer contracts which represent significant sales growth for 2022 and we are looking to close this year’s sales pipeline with excess contract value. of 10 million dollars in potential new sales. “

Keith D. Beekmeyer, CEO of Newpoint said “2021 has been a landmark year for Newpoint having closed $ 250 million in solvency capital investments in several insurance and reinsurance companies through Europe and United States. We are happy to end the year on a high note with this $ 50 million investment in Novea. We believe that Novea’s technology and exclusive claims handling will redefine the consumer warranty market, and we look forward to a long-term, mutually prosperous partnership with them. “

Iroko Securities, a subsidiary of Newpoint, served as financial advisor to Newpoint. NMS Consulting served as a strategic advisor to Novea.

About NOVEA, INC.
Novea Inc. is a financial services technology (FinTech) software company that has launched its proprietary user application, Jacana Warranty, fully backed by Jacana Insurance, two wholly owned subsidiaries of Novea, Inc. Jacana Insurance is a captive specialty insurer which offers guarantees and service contracts on consumer products and electronics. Jacana Warranty has put the purchasing power of warranty back into the hands of the consumer with the goal of becoming the consumer’s ideal choice. For more information, please visit www.jacanawarranty.com.

About Newpoint Financial Group SARL.
Newpoint Financial Group SARL., Along with its global affiliates and subsidiaries, is a diversified global financial services holding company that operates in several business units, including insurance, reinsurance, insurance brokerage, investment banking , wealth management and asset management with operations located everywhere Europe, United States and West Africa. For more information, please visit our website at: www.newpointfinancialcorp.com.

Disclaimer regarding forward-looking statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections regarding future events and financial trends that the company believes could affect its financial condition, results of operations, business strategy. and his financial needs. Investors may identify these forward-looking statements by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “intend” ” plan ”,“ believe ”,“ potential ”,“ continue ”,“ is / are likely to ”or other similar expressions. The company makes no commitment to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be correct, and the company cautions investors that actual results may differ materially from anticipated results.

Media contact and investor relations:
Lili swanson
NMS Consulting
[email protected]
+1 310 855 0020

SOURCE Novéa Inc

Related links

http://www.jacanawarranty.com
http://www.newpointfinancialcorp.com

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