Bucharest-based software group Bittnet Systems has called an extraordinary general meeting of shareholders for April 29 to approve a potential bond issuance of EUR 5 million, with the option to increase the amount to up to EUR 15 million in case of strong investor demand.

The planned issuance comes as Bittnet’s market capitalisation has declined to around RON 65 million (EUR 13 million), following a 40% drop in its share price over the past year.

The proposed non-convertible corporate bonds would mature in June 2031 and carry an annual interest rate of 10.6%, payable semi-annually. Each bond would have a nominal value of EUR 100, Ziarul Financiar reported.

The company is also exploring the possibility of converting existing bonds issued under the tickers BNET27A, BNET28, and BNET28A, based on a predefined exchange ratio.

According to the proposal, the funds raised would be used to support current operations, refinance existing liabilities - including outstanding bonds and bank loans - and potentially finance share buyback programmes. The company also retains the option to redeem the bonds early under certain conditions.

Alongside the bond issue, shareholders will vote on a share buyback programme of up to 300 million shares, aimed at reducing the company’s share capital. Additional proposals include cancelling shares already repurchased or indirectly held, which would bring total share capital below RON 61 million.

Bittnet also plans to ratify recent transactions aligned with its asset optimisation strategy, including the acquisition of a cloud infrastructure company and the sale of a portfolio stake.

iulian@romania-insider.com

(Photo source: Bvb.ro)