ECM is summoning EGM on 29 May. Agenda includes authorization and empowerment of BoD to realize increase of the corporate capital in one or several successive tranches. This relates to for example the exercise of warrants issued, shares under option plan or equity step-up program.
Our view:
We see the news on summoning EGM as neutral, however agenda keeps our attention focused on the final outcome as there is a possibility of equity step-up program of up to 1,500,000 shares over 4 years agreed with BA-CA. Note that this approach of financing is not extraordinary for real estate companies and
Orco uses similar approach. Note that 1,500,000 shares represents some 40% of currently outstanding shares or 27% should the outstanding 1,728,180 warrants are also considered as their lock-up period ends beginning of June.