WasteCo completes first Navaa funding stage as majority stake remains possible

Navaa completes first $3 million investment

WasteCo Group Limited (NZX:WCO) has secured the first cash injection in a proposed investment that could ultimately place the waste services company under the control of Singapore-based Navaa Holdings. The initial stage comprises 287,714,754 new WasteCo shares issued at $0.007 each for $2.014 million, alongside a $985,997 unsecured term loan.

The two-part funding takes Navaa’s investment to $3 million so far, completing the initial transaction outlined in the company’s initial $3 million investment proposal last week. WasteCo did not disclose the loan’s interest rate or repayment terms in this announcement.

The subscription agreement also gives Navaa the right to appoint an additional WasteCo director. That creates an immediate governance link between the new investor and the board, although the announcement does not say whether the right has yet been exercised.

Further subscription would create majority ownership

Navaa has conditionally agreed to subscribe for another 867,761,547 shares at the same $0.007 price, representing a further equity investment of $6.074 million. If completed, the issue would result in Navaa holding 50.01% of WasteCo, with rights to subscribe for additional shares to maintain that percentage and avoid dilution.

That second stage is scheduled for 3 May 2027 but is not yet assured. Navaa must complete due diligence to its satisfaction by 15 February 2027, while WasteCo shareholders must approve the transaction under rule 7(d) of the Takeovers Code and the NZX Listing Rules.

For WasteCo, the completed funding provides fresh equity and debt capital during its stated turnaround plan. The more consequential question is whether the company can clear the remaining conditions for the larger subscription: at that point, the financing would also become a change-of-control transaction with continuing implications for shareholder dilution, board composition and Navaa’s ability to preserve its majority position.