PAYNOVA PROPOSES NEW ISSUE PRICE FOR NEW SHARE ISSUE AT TODAY’S ANNUAL GENERAL MEETING
The Paynova Board has decided to withdraw its proposal to the Annual General Meeting to approve a decision on a new share issue made by the Board on 13 April. The Board has also decided to reverse its decision on this issue. The significant difference in the decision is that a new issue will now be implemented with an issue price of SEK 4 instead of the SEK 2 that was previously announced, and this time it is subject to the approval of the Annual General Meeting.
The background to this change is as follows: Theoretically, the issue price plays no part in a preferential rights issue, since all shareholders have the same right to subscribe. The Board deliberately chose a low issue price in its earlier decision and at the same time announced that the stated issue price did not constitute any valuation of the company’s share.
Since that decision was announced, representatives of over 25 per cent of the shares and votes in the company, together with United Brokers AB, have proposed a new issue at a higher issue price of SEK 4, and have also ensured this by means of subscription obligations and guarantees. This is due to a number of things, including the volume development reported in the interim report published on 12 May. The proposers have also made clear that since there is now a SEK 4 proposal and that a significant proportion of shareholders are now opposed to an issue at the rate previously determined by the Board, the Board should withdraw its proposal.
The Board has made the following assessment: It is important for the company to obtain the capital it requires to give it a profitable turnover. A majority of the shareholders now hope for an issue of SEK 4 and are opposed to an issue at a lower level. This majority has also, in the same way as in the Board’s original decision, ensured a supply of capital by means of a combination of subscription obligations and guarantees. The Board thus has no reason to oppose the wishes of the majority. Therefore the Board is withdrawing its proposal to the Annual General Meeting for approval of the issue decision and certain proposals concerning changes to the company’s articles of association, reversing its earlier decision on a preferential rights issue and making a new issue decision in accordance with the proposers’ request and calling for a new general meeting so that this decision may be approved.
For more information, please contact:
Johan Waxberg
CEO, Paynova
Tel: +46 (0)8 517 100 23
Mobile: +46 (0)706 88 02 47
E-mail: johan.waxberg@paynova.com
About Paynova
Paynova AB offers secure payment solutions over the Internet in the form of a wallet that handles sums from one Swedish krona upwards. The Paynova Wallet is easy to acquire and use, and simple for retailers to install. More than 20,000 banks worldwide accept VISA and MasterCard payments via the Paynova Wallet. Paynova currently has agreements with over 800 e-retailers, e.g. CD WOW, SJ, Fujifilm i Sverige AB, Swebus Express and Ryanair. The company is listed on NGM. For further information, visit: www.paynova.com