Key events in Q3 2020
Publication of Universal Registration Document | July 2020
On July 15, 2020, the Financial Supervisory Authority approved Bittnet’s Universal Registration Document by Decision no. 867. The company has prepared and submitted the Universal Document for approval in order to simplify and accelerate the processes of future public offerings of securities. After receiving ASF approval, for any new offer of financial instruments issued by Bittnet, regardless of its type or class, the company only needs to prepare a note on securities and a summary. Under EU law, frequent issuers are encouraged to prepare their prospectuses in the form of separate documents, as this reduces the cost of ensuring compliance with the regulation and allows them to react quickly to market opportunities. Bittnet’s intention is to benefit from this solution in the next period, considering the future operation of increasing the share capital through cash contributions approved by EGMS Decision no. 4 from April 29, 2020.
Share capital increase with free shares (7:10) | July 2020
On July 24, 2020, the Central Depository charged to the shareholders’ accounts from the registration date 21.07.2020 a number of 89,074,893 free shares issued according to the EGMS Decision no. 2/29 April 2020. The operation had an allocation rate of 7 free shares for every 10 shares held, and the Company’s capital was increased to the amount of 21,632,474 lei.
Publication of the additional procedure and opt for cash distribution vs shares | July 2020
Bittnet made available to investors an electronic option solution in order to implement the EGMS Decision no. 3 / 29.04.2020, so that the shareholders from the registration date could choose between cash distribution or receive a free share of 10 held after the ratification of the additional procedure in the GMS of November 2020 and after the issuance by ASF of the new registration certificate.
Thus, during the period of expression of options (July 22, 2020 – July 30, 2020) the Issuer received a number of 285 options, from 285 shareholders.
Of the options expressed, 172 shareholders representing 92,448,298 voting rights, ie 72,6510% of the total voting rights opted for cash distribution (and to leave the free share to the Company). The company transferred to them the nominal value for the free share, ie the amount of 924,482 lei on August 3, through the Central Depository system, having Banca Transilvania as Paying Agent.
Of the options expressed, 113 shareholders representing 8,248,218 voting rights, ie 6.4819% of the total rights opted for Option 2 – one free share for every 10 shares held on the registration date: July 21, 2020.
A number of 1,642 shareholders representing 26,553,331 voting rights, ie 20.8671% of the total voting rights did not take any action, being therefore considered to have opted for Option 2 – one free share for every 10 shares held on July 21 2020.
Following the ratification by the GMS of November 2020 of the procedure and its results, and the issuance by the FSA of a new CIVM, the Central Depository will charge to the Issuer’s account a number of 9,244,829 shares and to the shareholders’ accounts listed in the previous paragraph a total of 3,480,154 actions.
BNET inclusion in BVB indices: BET-XT, BET-XT-TR, BET-BK, BET-Plus | September 2020
On September 10, Bittnet informed investors about the decision of the Bucharest Stock Exchange Indices Commission, convened on September 9, 2020, to include the Company’s shares in the 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) and BET-Plus (Bucharest Exchange Trading Plus Index). The entry into force of the changes at the level of the respective indices took place starting with September 21, 2020. The inclusion of BNET shares in BET-XT, BET-BK and BET-Plus indices was based on indicators such as liquidity, stock market capitalization and free-float and confirms the evolution of Bittnet market value and liquidity.
Payment of coupons for BNET bonds | Throughout Q3 2020
The company is up to date with the payment of coupons to bond investors. Throughout Q3, coupon no. 12 related to BNET22 bonds (September), coupon 9 related to BNET23 issue (August), coupon 3 for BNET23A bonds (July) and coupon no. 3 related to the BNET23C issue (July) were paid.