On 23 March, GlobalCapital plc announced that, in line with intentions expressed in the company announcement dated 28 December 2017, the Company shall be submitting an application to the Listing Authority in April 2018 requesting the admissibility to listing of new ordinary shares pursuant to a rights issue. If subscribed in full, the proposed Rights Issue will raise a total amount of approximately €6 million which in turn will be utilised to strengthen the Company’s position in the local insurance market as well as to passport its insurance products in other EU jurisdictions. The Board also considers the additional equity to be raised to be appropriate to strengthen the capital levels of the Company in the context of the evolving business and regulatory environment.
The announcement also noted that the proposed Rights Issue is unrelated to the offers announced by the Company on 13 March and 16 March 2018 relating to the stake held by Cyprus Popular Bank Public Co. Ltd. (“Cyprus Popular Bank”) in Lombard Bank Malta plc, which offer has lapsed since it was not accepted by Cyprus Popular Bank, as is evident from the public announcement dated 16 March 2018 that Cyprus Popular Bank has entered into a share purchase agreement with the National Development and Social Fund in respect of such stake. Furthermore, none of the financing entities referred to in the Company’s announcements dated 13 March and 16 March 2018 have entered into any agreement with the Company in respect of its proposed rights issue.
The proposed rights issue is subject to Listing Authority approval and as such further details will be announced at the appropriate time in accordance with the Company’s regulatory obligations.