UMT United Mobility Technology AG (German Securities ID: 528610, ISIN: DE0005286108) today reported the execution of a capital increase involving a total of 1,642,567 shares. In connection with the rights issue (public offer) for shares of UMT United Mobility Technology AG, 485,900 new shares in the company were subscribed by shareholders in the period from 7 July 2014 to 21 July 2014 by means of statutory subscription rights and regular over-allotment and 1,156,667 shares were subscribed by institutional investors in connection with a private placement and were allotted to investors today.
There also was, and continues to be, sustained interest from investors in purchasing a block of 10,000,000 new shares in connection with the cash capital increase adopted by the company or, alternatively, acquiring shares in UMT United Mobility Technology AG soon in the course of a private equity transaction.
The company's management team and supervisory board have come to the conclusion, after careful consideration and deliberation, that in light of the company's strong operational performance at the moment, as well as the order situation is it now appears, the company's financing is adequately ensured for the time being for accomplishment of the company's goals with the allotted shares. This is particularly attributable to the very positive business development, which at the time the resolution was adopted with respect to the cash capital increase and the structuring of that capital increase, was not yet concrete enough to be used as a basis for planning.
In view of these circumstances, and in the interest of the company as understood by management, the dilution of the existing shareholders based on a valuation of EUR 1.50 per share, in addition to the capital increase now being realized by means of subscription rights and over-allotment, does not appear to be operationally and strategically expedient at the present date.
"Our goal is to allow a growing number of small and mid-size shareholders to benefit from the company's success by working diligently, as before, to boost the company's value. Taking on an investor which is interested primarily in financial objectives would not be compatible with this goal. Taking on such a large amount of capital from an investor based on the present valuation would not only result in significant dilution, but would also result in a loss of control by the founders and the original shareholders. We are convinced that this would substantially impair or counteract the very successful work of the management team. The balance between financing and strategic independence would no longer be assured," explained Albert Wahl, CEO of UMT United Mobility Technology AG.
Of course, the addition of partners/investors able to contribute not only capital, but strategic synergies and additional business as well without jeopardizing the control of the founding shareholders, is and remains an expedient measure for the company and conforms to the long-term goals and capital position of its shareholders. Management is constantly examining all relevant offers for expediency and will consult the shareholders once again if a decision is to be made in that regard.
The capital increase for 1,642,567 shares in the company was entered into the Commercial Register on the present date.