The Grounds Real Estate Development AG: Capital measures with participation of H.I.G. Capit

EQS-Ad-hoc: The Grounds Real Estate Development AG / Key word(s): Corporate Action/AGM/EGM The Grounds Real Estate Development AG: Capital measures with participation of H.I.G. Capit 09-Aug-2024 / 21:09 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

Ad-hoc announcement pursuant to Article 17 of the MAR
(Market Abuse Regulation)

 

-Capital measures with participation of H.I.G. Capital –

 

• Announced potential partnership with H.I.G. Capital is now to be implemented
• Capital increase by up to EUR 53.4 million with prior capital reduction at a ratio of 2:1
• Further increase of the bond issued in October 2023
• Condition precedent inter alia waiver of interest claims under the bond WKN: A3H3FH | ISIN: DE000A3H3FH2

 

Berlin, 9 August 2024 - The Grounds Real Estate Development AG (“Company” / ISIN: DE000A2GSVV5) is now taking the next steps in connection with the strategic partnership with funds managed by H.I.G. Capital announced in the ad hoc announcement of 13 October 2023. The capital increase announced in this ad hoc announcement is now to be resolved at the Annual General Meeting on 19 September 2024. Up to [53,416,548] new no-par value registered shares ("New Shares") are to be issued. Shareholders will be granted statutory subscription rights. The capital increase is to be preceded by a simplified capital reduction, which is to be resolved at the same Annual General Meeting. The capital reduction will be carried out for the purpose of offsetting losses by consolidating shares at a ratio of 2:1, i.e., the share capital is – prior to the capital increase – to be reduced from EUR 17,805,517.00 to EUR 8,902,758.00 divided into 8,902,758 no-par value registered shares with a pro rata amount of the share capital of EUR 1.00 each. Prior to this, for the purpose of an even share capital number, one old share provided to the Company by a shareholder free of charge will be cancelled. Background for the capital reduction is also that the company has decided to book a depreciation on various properties in its half-year financial statements as of June 30, 2024, for reasons of caution. The Company now expects a negative EBIT of between EUR -7 million and EUR -9 million.