Digitalist Group Enhances Financial Stability Through Bond Conversion

Strategies for Strengthening Digitalist Group's Financial Position

Digitalist Group Plc, a prominent player in the tech industry, is taking significant steps to enhance its financial health. Recently, the Company has announced its decision to convert a total of approximately 3.86 million euros in convertible bonds into capital loans. This initiative, in collaboration with its major shareholders, Turret Oy Ab and Holdix Oy Ab, is aimed specifically at fortifying the Company’s balance sheet.

Understanding the Convertible Bonds Conversion

The conversion of these bonds is executed in accordance with Chapter 12 of the Limited Liability Companies Act. This legal maneuver allows the company to transform debt into capital, thereby strengthening its equity base and supporting future growth initiatives.

Details of the Convertible Bonds

Digitalist Group's financial team has meticulously outlined the details regarding four specific convertible bonds due to be transformed into capital loans:

The first bond involves a principal amount of 650,000 euros, plus accrued interest. Key terms include:

• An annual interest rate set at 6 percent.
• Repayment obligations dependent on the Company's unrestricted equity.
• Options for converting into shares capped at 65 million new Digitalist Group shares.
• The bond has a loan period extending until September 30, 2026.

This bond, subscribed by Holdix, totals 350,000 euros. Its pivotal terms consist of:

• Similar 6 percent annual interest rate.
• Conversion right attached restricts total shares to 35 million.
• Identical repayment conditions applicable.
• Standard loan maturity timeframe is also set until 2026.

Significance of Bonds 2023 and 2024

Further, bonds 2021/3 and 2021/4 involve substantially larger sums and key conversion rights.

With a principal of 13 million euros, this bond ensures significant capital flow with terms as follows:

• 6 percent annual interest, stressing liquidity conditions tied to Company health.
• Prime conversion rights to facilitate ample shares flowing into circulation.
• The main loan window remains aligned with previous bonds—ending in 2026.

Lastly, this bond's principal is set at over 6 million euros, with similar stipulations regarding interest and conversion:

• Stipulates right to approximately 606 million shares.
• Maintains 6 percent interest across the loan lifecycle.
• Adhering to a consistent loan conclusion by September 30, 2026.

Focus on Shareholder Relations

Reflecting a strong commitment to shareholder value, both Turret and Holdix are key stakeholders in Digitalist Group. This bond conversion emphasizes their confidence in the firm's strategic direction and potential for future performance. As the largest and second-largest shareholders, respectively, their engagement in this process is crucial for building financial stability.

Management Transparency and Compliance

Transparent governance is paramount for Digitalist Group. The board, including members who abstained from the decision-making on certain convertible bonds, reinforces adherence to regulations concerning related party transactions. Such governance mechanisms enhance trust among investors and stakeholders.

Continued Path Forward

Digitalist’s strategic approach to enhancing its balance sheet through convertible bond conversions illustrates its readiness to adapt and respond to market conditions. As the Company moves forward, its innovative strategies aim to fortify investor confidence and fuel ongoing opportunities for growth. With a well-structured repayment framework and proactive shareholder involvement, Digitalist Group Plc is positioned to effectively navigate future challenges while delivering sustained value to its shareholders.

Frequently Asked Questions

What is Digitalist Group's primary goal with bond conversion?

The main objective is to strengthen the Company’s balance sheet and enhance its financial stability.

How does the bond conversion process work?

The process involves converting existing convertible bonds into capital loans to boost the company’s equity base.

What are the terms associated with the convertible bonds?

Key terms include fixed interest rates, conversion rights to new shares, and specific repayment timelines set until 2026.

Who are the main shareholders participating in this conversion?

The primary shareholders involved are Turret Oy Ab and Holdix Oy Ab.

Why is transparency important in this process?

Transparency ensures compliance, builds trust with stakeholders, and reflects responsible governance practices within the Company.

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