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24.11.2004
Intershop Communications plans rights issue
Convertible bond with attractive conversion ratio for all shareholders Jena, Germany, November 24, 2004 – The Executive Board of Intershop Communications AG (Prime Standard: ISH1; "Intershop" or "the Company") intends to issue zero-coupon convertible bonds worth up to EUR 20 million shortly, based on the corresponding resolution adopted by the 2001 annual shareholders’ meeting. The terms of this rights issue are as follows:
The bond matures on December 15, 2008, and has an effective interest rate of 10% per annum, equivalent to a repayment of 146% on maturity. Each convertible bond with a face value of EUR 1.00 can be exchanged for one share certificate; this ratio will be unaffected by any later capital reduction. As part of the ongoing restructuring efforts, the Executive Board and the Supervisory Board intend to suggest to the next annual shareholders’ meeting a capital reduction by merging shares. In design, the convertible bond will closely resemble an equity security.
In addition to the right to subscribe, shareholders will be permitted to oversubscribe, i.e. shareholders can subscribe convertible bonds in excess of their subscription rights. The subscription rights will not be traded on any stock exchange. Bonds not subscribed by existing shareholders will be offered to investors via a private placement.
The rights issue will only go ahead if the Company receives a gross inflow of at least EUR 5 million. If this minimum issue volume is not reached, the transaction will be unwound. The object is to ensure that the Company not only has sufficient funds available to successfully conclude the restructuring measures already in progress, but also to carry out necessary investment in the sales organization. An important element in these restructuring activities is the final termination of the long-term lease for Intershop Tower, which has cost the Company more than EUR 1 million a year due to empty space.
The convertible bond issue is guaranteed by the rights to Intershop’s software. The sponsoring bank is VEM Aktienbank AG. The Company’s shareholders will shortly be informed about the rights issue and the terms of the convertible bond by the banks that hold their securities accounts.
Investor Relations:
Annett Körbs
T: +49-3641-50-1370
F: +49-3641-50-1309
ir@intershop.de
Public Relations:
Dr. Ute Danz
T: +49-3641-50-1000
F: +49-3641-50-1002
pr@intershop.de
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