The Board of Directors of Lumito proposes a reversed share split
Lumito AB’s (publ) (“Lumito” or “the Company”) Board of Directors proposes that an extraordinary general meeting resolves on a reverse share split, whereby five hundred (500) existing shares are consolidated into one (1) new share. If the extraordinary general meeting resolves in accordance with the proposal, the total number of shares in the Company will decrease from the current 1,720,448,151 shares to approximately 3.4 million shares. The Board further proposes that the extraordinary general meeting resolve on a reduction in the restricted capital (the share capital). The proposals will be presented in detail in a separate notice convening the extraordinary general meeting.
Reversed share split
The rationale behind the Board’s proposal, which is believed to be in the best interest of the Company and its shareholders, is that the Company currently has a very high number of outstanding shares combined with a relatively low market price per share, creating high volatility. The Board of Directors believes that a reverse share split would result in a more appropriate and reasonable trading price for the Company’s shares, and that the share price following the reverse share split will be more easily understood, as it will be expressed in Swedish kronor and öre rather than in fractions of an öre.
Lumito wishes to emphasise that a reverse share split does not, in principle, affect shareholders’ ownership proportions. Shareholdings will instead be represented by a smaller number of shares with a correspondingly higher nominal value. Consequently, the Company’s market capitalisation is also, in principle, unaffected by the reverse share split.
Should the extraordinary general meeting approve the reverse share split, the outstanding warrants of series TO7, which were issued in connection with the recently completed rights issue of units, will be subject to recalculation. Such recalculation will be carried out in accordance with the terms and conditions adopted at the time of issuance of the warrants. Further information regarding this recalculation will be communicated through a separate press release.
Share capital reduction
At the planned extraordinary general meeting, the Board of Directors also intends to propose a reduction of the Company’s restricted capital (the share capital), which has increased to a relatively high level following the most recent capital raising. This does not affect the total equity but is rather a reclassification of the restricted capital to unrestricted equity.
Notice for extraordinary general meeting
A notice convening the extraordinary general meeting to resolve on the above matters will be published through a separate press release in the near future.