“The share consolidation is another important milestone in closing the first chapter of our development on the Bucharest Stock Exchange, a journey that began three years ago with our IPO. During this period, we have tripled our turnover, supported by more than 100 million euros of capital raised from our investors. The share consolidation, which will take place after the current capital increase with cash contributions, will be completed before the end of 2024. It will drive us into a new phase of growth, guided by the strategy outlined in our One 2030 blueprint, which we presented at our recent Capital Markets Day. This strategic target, as proposed by the Board of Directors, is designed to benefit our shareholders over the long term, and ensure that we continue to create sustainable value as we progress towards our ambitious goals,” stated Claudio Cisullo, Chairman of the Board of Directors at One United Properties.
The consolidation will involve offering 1 new ONE share for every 50 existing shares, impacting the number of shares and the nominal value of One United Properties' shares. Consequently, the nominal value of ONE share will increase from RON 0.2 per share to RON 10 per share. The consolidation is intended to adjust the number of shares and increase the share price proportionally, without changing the company's overall market capitalization
The share consolidation is designed to enhance the overall trading dynamics of the stock. With fewer shares, the consolidation is anticipated to contribute to a more stable trading environment, reducing the percentage-based volatility often associated with lower-priced stocks. It is important to note that the consolidation will not affect the value of shareholders' holdings, except for minor adjustments due to the rounding of fractional shares, without any dilution effect .
In cases where the share consolidation results in shareholders holding a fraction of a share, the company will compensate the investors in cash. The compensation price, which is based on the average adjusted trading price over the last 12 months for the non-consolidated share, multiplied by 50 (to reflect the consolidation ratio), has been established, in line with applicable legislation, at RON 46.225 per consolidated share.
The registration date for the operation is proposed to be December 11th, 2024, following the closing and registration of the ongoing share capital increase with the relevant authorities. This means that the shareholders who purchase ONE shares by December 9th, 2024 will benefit from the share consolidation. Shareholders will not need to take any action as a result of this consolidation. The consolidation will be carried out automatically, and the changes will be reflected in shareholders' accounts on the effective date of December 12th, 2024.
