Attorney at law Krzysztof Topolewski and attorney at law Mateusz Wojtkowiak advised, supported and provided legal support for the successful reverse split of the shares of a public company listed on the official stock exchange listing market of the Warsaw Stock Exchange together with the development of an alternative operational solution for covering consolidation deficits. The Law Firm conducted the process comprehensively, starting with substantive support at the stage of preparing resolutions of the General Meeting of Shareholders through technical support at the stage of implementation of the resolutions adopted by the Management Board, as well as during the operational contact with the National Depository of Securities.
The merger (reverse split) of shares, commonly referred to as re-split, is a reverse operation to the split of shares. The merger (reverse split) of the existing shares results in an increase in the nominal value of the new shares with a direct proportional reduction in their number. This operation is completely neutral to the amount of share capital.
The process of merging the shares of a public company serviced by the Law Firm was carried out in such a way that 10 existing shares with a nominal value of PLN 1 were exchanged for 1 new share with a nominal value of PLN 10.
Our proposal solved the problem of “merger shortages”, i.e. the situation where the investment account indicated the absence of several existing shares, which had to be added together with other existing shares in that investment account to be finally exchanged in the depository system of the National Depository of Securities for 1 new share. The Law Firm recommended to the company the simultaneous implementation of a buy-back programme of own shares, which in the first place were intended to cover consolidation shortages, and then are intended to be redeemed.
The merger process was commented on in the industry media dealing with the Warsaw Stock Exchange.
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