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Dividend invests in RTO company and intends to distribute shares to its shareholders
Dividend Sweden has entered into an agreement with European Capital Markets SE ("ECM") to invest in and diversify the ownership of ECM's wholly-owned subsidiary EC European Capital RTO 1 AB ("EC RTO 1"), an RTO company with the ambition to be listed on the Spotlight Stock Market. The parties' intention is to cooperate on additional future RTO company projects.
European Capital Markets SE is a corporate finance boutique and transaction platform focused on supporting growth companies in Europe. The company's core business consists of capital markets advisory, listings, RTOs, investor relations and shareholder meeting solutions, with a clear focus on providing companies with access to public markets and growth capital in a structured and efficient manner. ECM's commitment to helping growth companies has built strong links with key players in the capital markets across Europe and extensive experience in creating and monitoring market communications.
Read more about the company on https://european-capital.de/
As ECM has close contact with several growth companies, they see great opportunities in listing so-called RTO companies on the Spotlight Stock Market, in order to offer their customers a smooth journey to a listed environment. An RTO company is a company with no operations that exists only to carry out a reverse acquisition of an unlisted company with operations.
Dividend Sweden will acquire 10 percent of the shares in EC RTO 1 at a valuation of EUR 500,000 whereby the purchase price (i.e., EUR 50,000) will be paid through set-off against a project invoice. Of these shares, 75 percent will be distributed to Dividend Sweden's shareholders, while the remaining 25 percent will be retained by Dividend Sweden.
Dividend Sweden's investment is conditional upon the shares in EC RTO 1 being affiliated with Euroclear and the company becoming public. Dividend Sweden will convene an extraordinary general meeting to decide on the distribution of its shares in EC RTO 1 to Dividend Sweden's shareholders after the investment has been made. The parties' intention is to cooperate on additional future RTO company projects on a non-exclusive basis.
"There is a substantial flow of highly promising European growth companies seeking access to the mature Swedish listing environment. By combining ECM's structures with our unique ability to rapidly and efficiently establish a broad shareholder base, we create an attractive pathway to Spotlight Stock Market. This represents the first of what we hope will be several future projects that will deliver both near-term dividend returns and long-term portfolio value to our shareholders," says Bo Lindén, CEO of Dividend Sweden.
For more information, please contact:
Bo Lindén, CEO, info@dividendsweden.se.