Carpathia Capital SA (hereinafter called the “Company”) hereby informs about another capital investment. On January 5, 2016 the Company received information on the allocation of bonds of Moto44 Sp. z o.o. (hereinafter called “Moto44”, the “Issuer”). According to the agreement, the Company acquired 500 (five hundred) bonds with a total nominal value of PLN 500,000 (nominal value of 1 bond is PLN 1,000.00). The purchase price in cash for 500 (five hundred) bonds of Moto44 Sp. z o.o. amounted to PLN 500,000.
The benefits resulting from the bonds include payment of interest in the amount of 7% per annum and the Bondholder right to require payment of the Issuer’s liabilities by converting them into shares representing 12.5% of the share capital of the Issuer. The redemption date was set at December 21, 2016 r.
The parties intend to list shares of a company created through conversion of Moto44 into a joint stock company in the alternative trading system on the NewConnect market in Poland at the turn of 2016 and 2017.
Moto44 Sp. z o.o. operates in the automotive sector in Poland and has been selling and servicing new and used motorcycles since 2013. In 2014, the first complete year of selling motorcycles, the Company reached PLN 4.18M in revenues, operating profit in the amount of PLN 0.20M and net profit of PLN 0.15M. According to the investment agreement in 2015 Moto44 expects to reach revenues of no less than PLN 8.0M, operating profit of no less than PLN 0.47M and net profit of no less than PLN 0.35M. Whereas in 2016 it expects to reach revenues of no less than PLN 12.0M, operating profit of no less than PLN 0.72M and net profit of no less than PLN 0.60M. If Moto44 does not fulfil the above described expectations, the Company will have the right to take up additional shares of the Issuer, regardless of the exercise of the right of conversion.
Moto44 is a dealer for the following brands: TRIUMPH, APRILIA, MV AGUSTA, HUSQVARNA, MOTO GUZZI for which it also provides authorized services. In total the Company has dozens of brands of motorcycles in its commercial offer. Moto44 also sells professional DAINESE motorcycle clothing as well as professional accessories that increase safety of the motorcyclists.
The purpose of the issue is increasing the Issuer’s working capital to expand its commercial offer of pre-owned motorcycles. In 2016 Moto44 plans to build a modern showroom for new and pre-owned motorcycles, along with an extensive service facilities.