The Board of Directors of Kvika banki hf. (“Kvika” or “the Company“) has, since the last meeting of the board, reviewed 18 notifications from holders of subscription rights on shares in the Company, amounting to a total nominal value of ISK 16,433,327 for exercising of the rights.
All notifications are from holders of subscription rights issued and sold in the year 2017 in accordance with Temporary Provision IV of Kvika‘s Articles of Association. This includes exercising of rights for total 16,433,327 new shares. Total purchase price amounts to ISK 109,662,961 and therefore the calculated average price per share is 6.673205.
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. 7/2020 on central depository system, settlement and the electronic registration of rights of title to financial instruments.
In 2017 Kvika also issued share options to employees in accordance with the Company’s share incentive scheme, confirmed by the Directorate of Internal Revenue based on article 10 of the income tax act. The board received 80 notifications for the exercising of share options from holders of the options for total 7,303,425 shares for calculated average price 6.4649602. The total purchase price therefore amounts to ISK 47,216,352.
The Board of Directors today exercised its authority according to i) point B of Temporary Provision I of the Company’s Articles of Association and ii) Temporary Provision V of the Company’s Articles of Association, to increase its share capital for total ISK 23,763,752 (that is ISK 16,433,327 + ISK 7,303,425), from ISK 2,053,582,426 to 2,077,319,178 nominal value, by issuing new shares. The total purchase price to the Company for the new shares is ISK 156,879,313.
According to point B of Temporary Provision I of the Company’s Articles of Association the board is authorised to raise the Company’s share capital for up to ISK 50,000,000 nominal value in order to fulfil share option agreements made in accordance with the Company’s share incentive scheme. The board exercised this authority for the first time today and since the Company has no outstanding share incentive schemes or agreements based on such schemes the board will, if nothing changes, propose to the next shareholder’s meeting that authorisation for further raise in share capital based on point B of Temporary Provision I will be revoked.
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.
This announcement is in accordance with the procedure introduced in the Company’s announcement from 19 September 2019.