Glocalnet prepares for listing: 10:1 split to be proposed to the Annual General Meeting
Glocalnet prepares for listing: 10:1 split to be proposed to the Annual General Meeting Stockholm, Sweden-March 14, 2000 - The Board of Directors of Glocalnet has decided to propose to the Annual General Meeting on 18 April to carry out a 10:1 share split, which will change the nominal value of the share from SEK 0.50 to SEK 0.05. Furthermore, it is proposed that the Annual General Meeting authorise the Board to issue shares in the Company in connection with acquisition of companies. It is proposed that this authorisation be valid until the next Annual General Meeting and apply to a total of at most 5,000,0000 shares of series B at a nominal SEK 0.05 per share. Decisions on issues shall be able to contain a deviation from the shareholders' preferential right. Any issues shall take place on commercial terms and be used in connection with the Company's acquisitions of companies (businesses and/or shares). The Board may decide on an issue in kind or that the share shall be subscribed with a set-off right or otherwise with conditions pursuant to Chapter 4, section 6 of the Swedish Companies Act. The Board moreover proposes that the Annual General Meeting provide authorisation, in connection with listing of the Company's shares on the OM Stockholm Stock Exchange's O list, to make a decision on issue of at most 10,000,000 shares of series B at a nominal SEK 0.05 per share. The issue decision may contain a deviation from the shareholders' preferential right and be addressed to the general public in Sweden and Swedish and/or foreign institutional investors. The Board also proposes that the Company carry out an issue of two subordinated debentures of a nominal SEK 1,000 per loan combined with 400,000 immediately separable option rights for new subscription of shares in Glocalnet. The subordinated debentures shall, deviating from the shareholders' preferential right, be subscribed to by Glocalnet Scandinavia AB, a wholly-owned subsidiary of the Company, for resale of option rights only to persons, who at the end of the subscription period, are employed by Glocalnet or its subsidiaries. The subordinated debentures shall be issued at a price equivalent to 96.192 per cent of the nominal amount. The nominal amount is SEK 2,000, each at SEK 1,000. The option rights shall be issued at a price corresponding to the market value of the options belonging to subordinated debenture 1. The premium for the option rights has been determined in accordance with Black-Scholes option valuation method. The valuation has been carried out by PricewaterhouseCoopers Corporate Finance. Subordinated debenture 1 consists of 250,000 options and subordinated debenture 2 comprises 150,000 options. These run without interest and fall due for payment on 30 November 2000. The issue takes place at an under price and the discount is equivalent to 6.5 per cent annual interest. The subordinated debenture shall be subscribed to at the latest by 18 April 2000. Each option right confers an entitlement to one new share of Series B at a nominal SEK 0.05 per share. For the separable options attached to subordinated debentures, subscription of shares can take place during the period 1 February 2002 to 30 April 2002. The subscription price for options attached to subordinated debenture no. 1 shall be equivalent to an amount totalling 160 per cent of the average price paid for the share during the period 4 - 17 April 2000. The subscription price for options attached to subordinated debenture no. 2 is 160 per cent of the aforesaid average price during the period 15 - 29 September 2000. Decisions according to this item require the support of at least 9/10 of the shareholders' votes and of the shares represented at the meeting. Further information will be available in the invitation to the Annual General Meeting on Friday, 17 March. Glocalnet develops and produces communication services sold direct to end- customers or alongside marketing partners. Glocalnet intends to become Sweden's third largest fixed private telephony player this year. The company's vision is to become a leading northern European operator within Internet-based services. Glocalnet has strategic collaborations with players such as Cisco Systems, Portal Software and Bredbandsbolaget. Glocalnet is headquartered in Stockholm, Sweden; the Glocalnet share is quoted on OM Stockholm Exchange's Nya Marknaden alternative market. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/14/20000314BIT00470/bit0001.doc http://www.bit.se/bitonline/2000/03/14/20000314BIT00470/bit0002.pdf