The Board of Directors of Kvika Banki hf. (“Kvika” or “the Company“) have received three notifications from owners of subscription rights on shares in the Company, amounting to a total nominal value of ISK 29,936,034, for the exercising of rights at the price of 4.16 ISK per share.
Pursuant to the contract regarding the issuance of subscription rights, the Board of Directors is obliged to raise the share capital to fulfil its obligations regarding these rights and take all possible measures that are needed to ensure the registration of the holders of the rights as shareholders in Kvika, including the issuance of share capital, the registration of the beneficiaries 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 III of Kvika’s Articles of Association, the Board of Directors is authorised to increase the Company’s share capital by up to ISK 58,635,392 for the purpose of fulfilling the Company’s obligations pursuant to the subscription rights which were issued and sold in 2016. Shareholders have no pre-emptive rights on new shares.
The Board of Directors today exercises its authority according to Temporary Provisions III of the Company’s Articles of Association to increase its share capital for the purpose of fulfilling the aforementioned subscription rights. The bank’s share capital has therefore been increased by ISK 29,936,034 and, after this increase, amounts to a nominal value of ISK 1,874,92,342, with the issuance of new shares. In the wake of this, the Board of Director’s facility to increase the share capital on the basis of Temporary Provisions III will be for a nominal value of ISK 28,699,358.
The share capital increase shall be announced and registered by the register of undertakings of the Directorate of Internal Revenue and new shares shall be issued by the Nasdaq central securities depository.
Two of the entities exercising the rights are companies owned by parties on Kvika’s executive board. This trading is therefore being conducted by entities financially connected to executives of the issuer and must be publicly declared. A separate announcement regarding the transactions will be published.