BITTNET SYSTEMS S.A. (hereinafter referred to as the “Company”) informs investors about the decision of the Bucharest Stock Exchange Indices Committee, published on September 9th 2020, to include the Company’s shares in the following BVB indices: BET-XT (Bucharest Exchange Trading Extended Index), BET-XT-TR (Bucharest Exchange Trading Extended Total Return Index), BET-BK (Bucharest Exchange Trading Benchmark Index) și BET-Plus (Bucharest Exchange Trading Plus Index). The changes at the level of the above indices will take place from 21 September 2020.

The inclusion in the indices of the most traded issuers from BSE comes after BNET shares were admitted to the Regulated Market on June 3rd, 2020. The inclusion of BNET shares in the BET-XT, BET-BK and BET-Plus indices was based on indicators such as liquidity, market capitalization and free-float and confirms the evolution of Bittnet’s market value and liquidity of shares. This is of particular importance to us because it allows investment funds that use these indices as benchmark, to invest in BNET stock.
The share of the BNET symbol in the index component, the values corresponding to free float factors (FF), representation factors (FR), liquidity factors (FL) and price correction factors (FCi) will be determined on the basis of the number of shares and the closing quotation recorded at the end of the trading day from September 11, 2020.

About BSE Indices

BSE indices reflect the evolution of the prices of the most traded companies or the evolution of certain representative sectors, such as the financial sector or the energy sector. As a calculation methodology, all BSE indices are price indices weighted with free float capitalization, with maximum limits for the component companies. With the exception of the BET-TR and BET-XT-TR indices, which are adjusted for dividends, the other indices only reflect the evolution of market prices.

BET-XT tracks the price changes of the 25 most traded companies listed on BSE’s Regulated Market, including the financial investment companies.

BET-XT-TR is the total return version of BET-XT index, which includes the 25 most traded Romanian companies listed at BSE. BET-XT-TR tracks the price changes of its constituent companies and is adjusted to also reflect the dividends paid by them.

BETPlus index is a free float market capitalization weighted index of the Romanian companies (except the financial investment companies) listed on BSE’s regulated market meeting the minimal selection criteria related to liquidity and free-float market capitalization.

BET-BK was designed to be used as a benchmark by asset managers and other institutional investors. The calculation methodology reflects on legal requirements and investment limits applying to investment funds.

Current Report no. 48