Clarification transaction of insiders

In order to ensure that the shareholders are properly informed, the Company warns shareholders about a wrong information published today in the press. 5th of October 2017, Ziarul Financiar published, both in print version and online, the article: ”Cristian Logofatu, shareholder and founder at Bittnet, sells shares for RON 22,400”. The article showing that Mr. Logofatu Cristian – CFO Bittnet – has sold a package of 120,000 Bittnet shares is incorrect. The notifications published on the Bucharest Stock Exchange’s news feed reveal the right information: Mr. Logofatu Cristian sold 120,000 preference rights (ticker: BNETR02) but bought 19,200 shares (ticker: BNET). The correct information can be found bellow: http://www.bvb.ro/info/Raportari/BNET/BNET_20171004094618_Raportare-initiatBNET.pdf http://www.bvb.ro/info/Raportari/BNETR02/BNETR02_20171004095901_RaportareBNETR02.pdf

Announcement about 5th coupon payment BNET19

BITTNET SYSTEMS S.A. (hereinafter referred to as “the Company”) announces that the 5th coupon payment for the Company’s bond issue – dated 15th July 2016, symbol BNET19 – will be made on October 16th 2017. The payment will be made through the Central Depository and Banca Transilvania – as The Paying Agent – to the bond holders registered in the Bond Holders Registry at the reference Date: 12th October 2017 (Ex-date: 11th October 2017). The interest will be paid via bank transfer directly to the accounts of all participants in the RoClear System, to the bondholders’ bank accounts whichwere confirmed by the bondholders in the Subscription Form, or to the bank accounts which were notified to the Payment Agent by the bondholders. The interest rate is 9% per year and the interest amount is a gross of RON 22.50 / bond. The Company’s corporate bonds are tradeable on the Bonds-ATS Market, administered by the Bucharest Stock Exchange, starting with 27th September 2016 – under the BNET19 ticker.

BNET19_CR5-raport-curent-english

Increase of the Share Capital

BITTNET SYSTEMS S.A. (hereinafter referred to as “the Company”) informs the shareholders about obtaining the ASF (Financial Supervisory Authority) visa no. 1353/28.09.2017 for the Offer Prospectus for the capital increase with new contributions in cash. The number of new issued shares will be 1.416.012 each with a value of RON 0.57 / share, issued by the Company in accordance with the Extraordinary Shareholder Meeting Resolutions from April 26th 2017. The total amount of the share capital increase will be RON 807,126.84, assuming that all shares are subscribed in Phase 1 of the capital increase. The shareholders who held shares at the registration date, May 22, 2017, will receive preference rights equal with the number of shares held at the registration date. For the subscription of a new share, in the capital increase operation, each shareholder must hold 10.25 preference rights. The number of new shares that may be subscribed by a shareholder is calculated by dividing the number of preference rights held at the registration date, at 10.25. If the result from the above calculation is not a natural number, the maximum number of shares that can actually be subscribed will be rounded-down to the next higher natural number. The preference rights will be listed on the BVB market and will be traded under the ticker symbol BNETR02, in a period of 10 working days from October 3rd to October 16th 2017. Subsequently to the Preference Rights trading period, investors holding rights may subscribe shares between October 23rd and November 22nd 2017. All the relevant information for the subscription in the capital increase can be found in the Offering Prospectus available for shareholders on the Company website and intermediated by SSIF Goldring SA.

Direct link for the prospectus: https://goo.gl/xjiihX

Registration of Gecad Net SRL shares transfer

Bittnet Systems S.A. (hereinafter referred to as “the Company”) informs the shareholders about registration, by the Trade Registry, of the shares transfer of Gecad Net SRL. Beginning with 21st September 2017, Bittnet is the Sole Associate of Gecad Net SRL.
The Company will focus its operational efforts to integrate the two legal entities, aiming at increasing the overall profitability by maintaining teams and increasing the combined turnover based on the common product portfolio.

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Successful offer of corporate bonds

Bittnet Systems S.A. (hereinafter referred to as “the Company”) informs the shareholders about the successful undertaking of a sales offer via private placement of corporate bonds, according to the Resolution no. 5 of the Extraordinary Shareholders Meeting of April 26, 2017. In the private offer the Company has sold the maximum number of bonds (45,000), which rise the amount of money invested by the bondholders at RON 4.5 Million.
The bonds have a face value of RON 100, a maturity of 5 years and a yearly coupon of 9%, payable quarterly. There were 19 subscriptions by natural persons. The money will be used to finance the takeover of Gecad NET SRL, and for working capital of this acquisition. In accordance to the resolution of the Extraordinary Shareholders Meeting, the Company will begin the process of listing the bonds issue on the ATS market operated by the Bucharest Stock Exchange.

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LEI Code Legal Entity Identifier

Bittnet Systems S.A. (hereinafter referred to as the “Company”) informs shareholders that the Company holds the Legal Entity Identifier Code (LEI code), as part of the process of alignment with the requirements imposed on capital market participants by the most recent European measures (MAD/MAR and MIFID II/MIFIR), applicable also to the issuers of financial instruments.

The Legal Entity Identifier (LEI index) is a 20-digit, code based on the ISO:17442:2012 standard developed by the International Organization for Standardization (ISO), that enables clear and unique identification on a global level of legal entities participating in financial transactions. The LEI index for Bittnet Systems is the following: 315700VUUQHM9VEDRO36.

Thus, the LEI code enhances the trust among the market participants.

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Semiannual Report 2017

Bittnet Systems S.A. informs shareholders about the disponibility of the Semiannual Report for the period January 1 – June 30, 2017 at the link below.

Raport Semestrial BNET – Semestrul 1 2017 EN

Continuous improvement of financing

Bittnet Systems S.A. (hereinafter referred to as “the Company”) informs the shareholders about the improvement of financing structure of the Company with the following operations regarding banking loans:

  • repayment of the working capital credit in amount of RON 1 Milion – Banca Transilvania SA;
  • closing the credit ceiling in amount of RON 2 Milion – Patria Bank SA;
  • repayment of the shareholders’ loans: RON 718,97;
  • maturity of working capital credit contracted with an initial amount of RON 350.000 – ProCredit Bank;
  • signing of a new revolving overdraft contract with ProCredit Bank in amount of RON 4,5 Milion.

The credit line has a fixed interest rate of under 3% per year and a 2 year maturity. The guarantees for this contract are:

  • 10% collateral cash deposit;
  • personal guarantees from the founders;
  • guarantee under the “SME Initiative” program funded by the European Union through ERDF and “Horizon 2020” and by the European Investment Fund and European Investment Bank.

The revolving overdraft credit will be used for financing current activity, working capital and the development plans of the Company. As a result of the above operations, the Company has “locked” the cost of long-term loans at an interest rate below 6%. (Considering the BNET19  bond issue at a fixed cost for the Company of 9% and the overdraft credit contracted with  ProCredit Bank at an annual cost of maximum 3%).

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Information takeover Gecad Net SRL

Bittnet Systems S.A. informs the shareholders about the successful conclusion of the negotiations for the takeover of Gecad Net SRL, and signing the selling – purchase agreement, according to the mandate given to the sole administrator by the EGSM resolution no. 6 from 26th April 2017. The process will have 2 stages. In the first stage, Bittnet will take part in the capital increase of Gecad Net SRL. The Company intends to undertake a private placement of a corporate bonds issue to finance the acquisition of all Gecad shares in the second stage. The estimated closing date for this transaction is September 30, 2017.