Notice to Creditors of Adriatic Bank AD Podgorica
Reduction of Share Capital
To: Creditors of Adriatic Bank AD Podgorica (the “Bank“)
Date: 24 November, 2021
As previously advised, Adriatic Capital LLC, a US corporation, acquired 100% of the issued shares of Nova Banka AD Podgorica, assuming the business risk of managing the Bank. At the date of acquisition the Bank had accumulated losses relating to its operations prior to the change of ownership.
We are pleased to announce that:
- positive monthly earnings have been achieved by the Bank in the period since the change of ownership; and
- the Bank’s performance and growth indicators have continued upward in 2021; and
- Assets under management by the Bank have surpassed EUR 200 million; and
- the Bank now has the highest growth rate of all banks in Montenegro.
The accumulated losses of the Bank from its establishment to the end of 2020 amounted to EUR 7,035,470.44. On November 5, 2021 Adriatic Capital LLC, as sole owner of the Bank, resolved to reduce the Share Capital of the Bank by an amount equal to the accumulated losses.
As a result of this action the Bank’s share capital will be reduced to EUR 9,445,000.00, and the number of issued ordinary shares with voting rights will be reduced from 412,011,761 to 236,125,000. The nominal value of each share will remain unchanged at EUR 0.04.
The reason for this decision of Adriatic Capital LLC is to ensure that, following the acquisition of the Bank, its business records properly reflect its business operations.
The reduction of share capital will in no way affect the Bank’s performance indicators and the interests of the Bank’s creditors.
This decision will also not result in a change of the Bank’s net assets and shall not adversely affect its capital adequacy and liquidity.
Adriatic Capital LLC also plans to retain the profit for 2021 to support stability and future growth of the Bank. Realized profit will be recognized as capital during Q1 2022, following adoption of the Bank’s 2021 audited financial statements.
The Central Bank of Montenegro, as the bank’s regulatory body, has given consent for the implementation of the reduction of share capital .
For any clarifications or questions concerning this notice, please do not hesitate to contact the Bank by e-mail at email@example.com or by telephone on +382 20 680 954.
Adriatic Capital LLC