Jena, 28 October 2019 – The Management Board and the Supervisory Board of INTERSHOP Communications AG (ISIN: DE000A0EPUH1) today adopted a restructuring program, which includes (i) various cost reduction measures, (ii) the proposal of a simplified capital reduction to the extraordinary General Meeting and (iii) the planning of financing measures for 2020. The program is the completion of the transformation into a cloud provider and the basis for the future business. Shareholder Value Management AG and Shareholder Value Beteiligungen AG support the restructuring program as anchor shareholders.
The implementation of the program will entail costs in the amount of approximately EUR 1 million for which a provision has to be established. The formation of this provision and the preliminary operating result (EBIT) of EUR -4.6 million for the first nine months of 2019 announced on October 15, 2019 lead to a loss of half of the Company's share capital within the meaning of Section 92 (1) of the German SCA (Stock Corporation Act, AktG) in accordance with the provisions of the German Commercial Code (HGB). Further losses in the amount of approximately EUR 4.5 million will result from the anticipated write-down of the carrying amounts of fixed assets in the next annual financial statements. The Management Board will therefore immediately convene an extraordinary General Meeting of the company, which is expected to take place in December 2019. The Management Board will report to the Annual General Meeting on the restructuring program and will propose to restructure the balance sheet by reducing the share capital by EUR 28,388,328 from EUR 42,582,492 to EUR 14,194,164 to cover losses and to transfer a partial amount to the capital reserve by way of a simplified capital reduction. The simplified capital reduction will be linked to a reverse stock split, with three old shares being consolidated into one new share.
Further details on the restructuring program will be published in the Federal Gazette as part of the convening of the extraordinary General Meeting.
Intershop (founded in Germany 1992; Prime Standard: ISHA) enables the world’s leading manufacturers and wholesalers to digitalize, transform, and boost their businesses. Our e-commerce platform and cloud-based technology give B2B companies the power to establish and expand their digital presence, improve customer experience, and increase online revenue. With 30 years experience and a global presence, we help our 300+ clients turn products into profits, customers into business partners, and transactions into lasting relationships.
Intershop is built to boost your business. Learn more at www.intershop.com.
This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.