The Board of Directors of Kvika banki hf. (“Kvika” or “the Company“) has, since the last meeting of the board, received five notifications from holders of subscription rights on shares in the Company, amounting to a total nominal value of ISK 9,499,999, for exercising of the rights.
All notifications are from holders of subscription rights issued and sold in September 2017 in accordance with Temporary Provision IV of Kvika‘s Articles of Association. This includes exercising of rights for total 9,499,999 new shares at the price of 6.25. Total purchase price amounts to ISK 59,374,994.
Pursuant to 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.
The Board of Directors today exercised its authority according to Temporary Provision IV of the Company’s Articles of Association to increase its share capital for the purpose of fulfilling the aforementioned subscription rights. The Company’s share capital will therefore be increased by ISK 9,499,999 and will, after this increase, amount to a nominal value of ISK 1,986,399,099, with the issuance of new shares. The board‘s authorisation to increase share capital in accordance with Temporary Provisions IV will, as a result of the above, be for a nominal value of ISK 547,083,350.
The share capital increase shall be announced and registered by the register of undertakings of the Directorate of Internal Revenue. The new shares shall be issued by the Nasdaq central securities depository and a request will be made for listing of the shares on the Main Market of Nasdaq Iceland hf.
This announcement is in accordance with the procedure introduced in the Company’s announcement from 19 September.
One party exercising the rights is a party financially connected to an executive of the issuer in accordance with article 127 of Act no. 108/2007 on securities transactions. In accordance with the aforementioned article the transaction must therefore be publicly declared. A special announcement was published on 26 November regarding the transaction.