On 28 December 2017, GlobalCapital plc issued an update on its intention to conduct a rights issue in respect of an amount of shares not exceeding €15,000,000 in nominal value by the end of 2017. In this respect, the company explained that during Q4 2017 it continued the process of redefining its business strategy in the context of its plans to strengthen its position in the local insurance market and to passport its insurance products in other EU jurisdictions, while at the same time preparing itself for the implementation of the Insurance Distribution Directive during the course of 2018. Against this background, the redefinition of the company’s business strategy, which is expected to be finalised in the first half of 2018, is likely to affect GlobalCapital’s optimum capital levels.
As a result, the Board of Directors of the company decided to postpone the proposed rights issue until such time as the capital plans underpinning its renewed business strategy, which is expected to be finalised in the first half of 2018, have been adequately defined in the light of the evolving business and regulatory environment. As such, the Board of Directors is now expecting the company to conduct the proposed rights issue during the course of 2018 to raise such amount of capital as may be determined to be appropriate, subject to regulatory approval.