Bittnet successfully closes private placement of BNET23 corporate bonds

  • On July 4th Bittnet has successfully closed its third corporate bonds issue
  • The company raised RON 4.7 million, which will fuel investments as well as working capital
  • 36 investors have participated in the private placement, including 3 investment funds
  • BNET23 bonds will float later this year on ATS-Bonds market of the Bucharest Stock Exchange

On July 4th, Bittnet (BNET) has successfully closed its 3rd placement of corporate bonds. During the private offer, which run from June 26th until July 4th, Bittnet has raised RON 4.7 million. The majority of the capital raised will fuel the acquisition of a 55% stake in ELIAN Solutions and 25% stake in Equatorial Gaming, while the remaining amount will be used as working capital.

The bonds have a face value of RON 100, maturity of 5 years and a yearly coupon of 9%, payable quarterly. The placement was subscribed by 32 natural persons, 1 legal entity and 3 investment funds. Due to the large interest coming from investors, the offering was closed 9 days ahead of the end of the subscription period, which was initially established for July 13th.

“Following the successful placement of BNET23 bonds, we are delighted to move forward in the process of acquisition and integration of ELIAN Solutions and Equatorial Marathon into Bittnet family. We thank, yet again, our investors for the trust vested in us and we look forward to further growing the company for the benefit of all our stakeholders“ said Mihai Logofatu, CEO at Bittnet.

ELIAN Solutions is a company with over 15 years’ experience in providing implementation of Enterprise Resource Planning (ERP) while Equatorial Gaming is a game-based learning company. Bittnet intends to finalize both transactions in the coming months.

“The two major milestones from this week: overpassing RON 50 million in market capitalization and successfully closing our third corporate bonds issue prove to us that respect for investors paired with good governance and transparency pay the best interest. We believe that integration of ELIAN Solutions and Equatorial Marathon into our new business structure will generate many synergies and will significantly contribute to our goal of reaching RON 100 million in sales by 2020” said Cristian Logofatu, CFO at Bittnet.

BNET23 is the third corporate bonds issue for Bittnet. The company has previously raised RON 4.1 million in 2016 through BNET19 bonds and RON 4.6 million in 2017 with BNET22 bonds. The capital raised in the latter transaction was used for the acquisition of what was formerly known as Gecad Net, now rebranded to dendrio. Both BNET19 and BNET22 bonds are listed on the Bucharest Stock Exchange.

In accordance with the resolution of the Extraordinary General Shareholders Meeting from April 25th, 2018, BNET23 bonds will be also listed on the ATS-Bonds market operated by the Bucharest Stock Exchange, under BNET23 symbol.

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