DGAP-Adhoc

EQS Group AG decides on 5 % capital increase

DGAP-Ad-hoc: EQS Group AG / Key word(s): Capital Increase EQS Group AG decides on 5 % capital increase 04-Dec-2020 / 08:51 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. EQS Group AG decides on 5 % capital increase Financing of corporate compliance growth Advanced discussions with SaaS provider

Munich - 4 December 2020

Today, the Management Board of EQS Group AG (ISIN: DE0005494165) decided with the approval of its Supervisory Board, to increase the share capital against cash contributions and by partially using the 2020 authorised capital, however without subscription rights for existing shareholders. The funds to be received will be used for financing the company's growth in the field of corporate compliance.

The company plans to issue about 350,000 new shares and will thus increase its share capital to up to EUR 7,524,890 which would be an increase by about 5 %. These new shares should be eligible for profit participation from 01 January 2020 and will be available exclusively to institutional investors under private placements through a placement process. The Management Board will determine the placement price which should probably not be significantly below the stock price after the completion of the process.

The expected net proceeds should predominantly be used for growth financing in the field of corporate compliance. Given the approaching date for a mandatory introduction of a whistle-blower system by companies active in the European Union at the end of 2021, it is planned to gradually increase the marketing and sales spending in the upcoming quarters to get in an optimum position for customer acquisition. EQS Group AG prepared a preliminary investment plan for that purpose and is conducting advanced discussions with a SaaS provider to strengthen its corporate compliance.