Ad-hoc notice pursuant to Article 17 of the Market Abuse Directive
The Grounds Real Estate Development AG issues convertible bond
Berlin, 26 January 2021 (21:13 CET/CEST) – The Grounds Real Estate Development AG has resolved to issue a convertible bond with subscription rights for shareholders. Commitments by major investors amounting to EUR 5,000,000 are already available to the company, and the total volume amounts to up to EUR 12,000,000. Existing shareholders have submitted declarations stating that they do not wish to exercise subscription rights, so that the subscription offer still relates to a volume of EUR 4,529,000 and will be carried out without a prospectus with a basic information sheet. The annual interest rate is 6 percent. The convertible bond will have a term of three years. The conversion price is EUR 3.20 per share. The company will publish a basic information sheet (“BIS”) for the convertible bond issue on the company’s homepage at https://www.thegroundsag.com/. The subscription period scope is expected to run from 1 February 2021 to 15 February 2021. It is expected that the subscription offer will be published in the Federal Gazette on 29 January 2021.
The company intends to use the net issue proceeds from the issue of the convertible bond mainly to finance the acquisition of new real estate properties in Germany and for general corporate purposes.
