The Board of Directors of Delta Technologies Plc, listed in the Standard category of the Budapest Stock Exchange, has decided to convene an Extraordinary General Meeting. The purpose of the General Meeting, to be held on 20 September, is to take the necessary steps for the early listing of the company's shares on the stock exchange.
The Company decided on capital increases on 22 May 2019 and 9 December 2019. These capital increases have been registered with the Companies Registry and the subscription of the shares issued in the context of the capital increase has been completed. However, the mandatory listing of the shares as required by the applicable stock exchange rules has not yet taken place in the absence of the approval of the relevant listing prospectus (the „Prospectus”) by the MNB.
To date, the Company has informed its shareholders and capital market participants of developments relating to the approval of the Prospectus in the form of the mandatory disclosures required by law. Since the creation of the shares issued in the capital increases, the Board of Directors of the Company has been working and continues to work to ensure that these shares are listed as soon as possible. Over the past months, in consultation with the Company's auditors, financial and legal advisors and the relevant authorities, the Board has identified steps to address the concerns raised about the approval of the Prospectus and the listing of the shares. In view of this significant milestone, the Board is now in a position to provide the Company's shareholders with a comprehensive and informed picture of both the reasons for the delay in issuing the decision to authorise the Prospectus and the Company's current financial and asset position, as well as the steps it intends to take and the expected timing of the steps it intends to take to list the shares in the capital increases decided on 22 May 2019 and 9 December 2019.
Certain measures contained in the plan of measures related to the listing of the shares (e.g. the planned capital increase and the related amendment of the Articles of Association) fall within the exclusive competence of the General Meeting, and therefore require a decision of the General Meeting. While the other elements of the action plan fall within the competence of the Management Board, it is important that they are submitted to the General Meeting for its endorsement, given that the measures form part of a single action plan.
The action plan also shows that the legal status of the 125 million shares resulting from the second capital increase, including the listing, will be preceded by a longer series of company law measures. In light of this, we have decided to separate the two listing processes and to focus on the early listing of the shares from the first capital increase in the interests of our shareholders affected by the bankruptcy arrangement. In the current situation, we see a realistic chance that this could happen in the near future.
