At the Annual General Meeting of G5 Entertainment AB held on June 19th 2013, it was decided to issue a maximum of 176 000 warrants to managers and senior executives of the G5 group in 2013. The Board of G5 then decided to allocate a total of 165 000 warrants to existing employees, keeping 11 000 warrants for potential new recruitments, etc.. These 165 000 warrants have now been fully subscribed. Board members with exception of the CEO were not entitled to subscribe.
Accordingly, G5 Entertainment AB will issue 165 000 warrants. Each warrant entitles the holder to subscribe to one share in the company at an issue price of 127,45 Kr. The period for the warrants is 3 years and 3 months, and it will be possible to exercise warrants after 3 years. Upon full exercise of the warrants, up to 165 000 shares, which represents about two percent of the total number of outstanding shares, will be issued.
With the share being extremely out of favour in recent weeks, the warrant issue price of SEK 127,45 would mark a premium of almost 200% to today’s share price. Management seems somewhat more optimistic than Aktietorget-investor. We wonder who’s more to trust…