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 Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online 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.