Based on authorisation in Kvika Banki hf.’s (“Kvika” or “the Bank“) Articles of Association the Board of Directors of Kvika has issued and sold subscription rights for shares in the bank. The holders of the rights are authorised to exercise their rights in part or in whole during specified exercise periods.

Once a holder of subscription rights has notified the Board of Directors of Kvika of the exercise of the rights, the board has 30 days to comply. Pursuant to the contracts regarding the issuance of subscription rights, the Board of Directors is obliged to raise the share capital to fulfil its obligations regarding the rights and issue share capital, register the holders of the rights in the share registry and ensuring their registration as the holders of the rights in the central securities depository, cf. Act no. 131/1997 on the electronic registration of title to securities. In accordance with Temporary Provisions II, III and IV of Kvika’s Articles of Association, the Board of Directors is authorised to increase the Bank’s share capital for the purpose of fulfilling the Bank’s obligations in accordance with the issued subscription rights.

The Bank will publish information on the exercise of rights immediately after each board meeting, when the board will have received all notices of exercise of subscription rights since the previous board meeting and agreed to raise the share capital for the purpose of fulfilling them.

Kvika believes that the above procedure gives a clear picture of the increase in share capital connected with the exercise of the issued subscription rights.

In cases in which the Board of Directors receives notices of the exercise of rights in accordance with the foregoing from its own management or financially connected parties, information on these transactions will be made public, in accordance with Article 127 of Act no. 108/2007.