Novaland wants to issue debt swap shares

Novaland muốn phát hành cổ phiếu hoán đổi nợ - Ảnh 1.

Today (December 13), Novaland announced the documents asking for shareholders' opinions to adjust and replace the stock issuance plans approved in the Resolutions of the 2022 and 2023 General Meetings of Shareholders.

Accordingly, for the issuance of shares to existing shareholders, the previously planned issuance ratio of 1:1 is proposed to be replaced by 10:6. Regarding the private issuance plan, the main change is that the issuance quantity is adjusted from 975,052,269 shares to a maximum of 200,000,000 shares.

Regarding the issuance of ESOP shares to employees in 2022 and 2023, the implementation period will be extended to the end of 2024 or another period as decided by the Board of Directors and it will be clarified that the issuance subjects are members of the Board of Directors, employees of the company and subsidiaries according to the list approved by the Board of Directors.

The above proposals aim to increase the ability to absorb additional issued shares and reduce the dilution rate of stock prices.

Novaland also asked for shareholders' opinions on registering bond trading at the Hanoi Stock Exchange (HNX), applicable to convertible individual bonds coded NVL42203 and non-convertible individual bonds, with warrants coded NVL52204 issued by the Company.

In addition, the company representative said that with the current difficult situation, cash flow arrangement cannot be implemented immediately or selling assets to repay debts is difficult to be effective when the market is not favorable. Therefore, in order to reduce financial pressure on the company, Novaland has been trying to negotiate with guarantors and creditors to bring maximum benefits to the company as well as ensure the harmony of interests of the parties involved.

Specifically, the company will seek shareholders' opinions regarding the policy of issuing shares to exchange debt for debts in accordance with the provisions of law and submit to shareholders a compensation framework agreement to establish the principle of compensation for all parties when using assets such as real estate, shares, capital contributions at other enterprises and other assets to secure Novaland's obligations.

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