Notice of Material Change in Cyber1 Group Subsidiaries
London United Kingdom – 16 April 2020 – Cyber Security 1 AB (Publ) (the “Company”) (“CYBER1”) (Nasdaq First North: CYB1), hereby notifies the market that its previously acquired subsidiaries Itway Turkey and Itway Greece have been released back to Itway S.p.A, who have now reassumed ownership of the subsidiaries.
The two subsidiaries (Itway Turkiye and Itway Hellas S.A), were acquired by CYBER1 in a transaction in late 2018. As part of the transaction, the parties had agreed that where CYBER1 was not able to pay certain amounts that had been adversely affected by a material change in the CYBER1 share price, Itway S.p.A would have the right to reacquire the subsidiaries for a nominal amount.
CYBER1 paid a total of €2.6m in cash and delivered a total of 16,666,666 CYBER1 shares at €0.48 per share to Itway S.p.A pursuant to the agreements underpinning the transaction. Despite having delivered on certain aspects CYBER1 was following a protracted, and in the end unfortunately unsuccessful negotiation with Itway S.p.A, ultimately not able to honour certain post-completion conditions of the transaction. Itway S.p.A have therefore, in accordance with the terms of the agreements, notified the Company of their immediate exercise of the option to reacquire the assets.
The Company will in due course provide an update on the wider ramifications of the unwinding of the transaction and will specifically provide an update on a course of action which will include the exercise of any of its rights under the agreements to recover monies paid to Itway S.p.A and the return of the CYBER1 shares delivered as part of the transaction.
This information is information that CYBER1 is obliged to make public, pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 16.04.2020 at 18:00 CET.
Mangold Fondkommission AB is the Company’s Certified Adviser.
Telephone: +46 (0)8 5030 1550 E-mail: info@mangold.se
FOR FURTHER INFORMATION, PLEASE CONTACT:
European Investor Relations Contact:
Tim Metcalfe / Zach Cohen
CYBER1 Email: cyber1@investor-focus.co.uk
US-Investor Relations contact, CYBER1
Matt Glover: U.S Investor Relations contact, CYBER1
Email: cyber1@gatewayir.com
ABOUT CYBER1
CYBER1 is engaged in providing cyber resilience solutions and conducts its operations through physical presences in UK, Sweden, Kenya, South Africa, United Arab Emirates and the United States. Listed on Nasdaq First North Growth Market (Nasdaq: CYB1.ST) and as an American Depositary Receipt (OTCQX: CYBNY), the Group delivers services and technology licenses to enhance clients’ protections against unwanted intrusions, to provide and enhance cyber resilience and to prevent various forms of information theft. CYBER1 had revenues of 68.73m EUR in 2019. For further information, please visit www.cyber1.com/investors.
For further information please visit: www.cyber1.com
For all company filings and reports, please visit: https://cyber1.com/cyber1-investor-information/