Social Chain plans capital increase to fund DS Holding acquisition

Social Chain plans capital increase to fund DS Holding acquisition

BERLIN, GERMANY: For the first time after the successful listing in the Prime Standard of the Frankfurt Stock Exchange, Social Chain AG is preparing a cash capital increase, a bourse filing said.

Due to the positive response from investors in recent weeks, the transaction could be implemented in the short term, subject to market conditions.

A capital increase of up to 10 percent of the share capital is planned, using the existing authorised capital and excluding subscription rights. The funds are to be used primarily to partially finance the purchase of DS Holding GmbH (DS Group).

Social Chain AG had announced the acquisition of the internationally operating brand and trading company on 19 October 2021. The Executive Board and Supervisory Board of Social Chain AG have not yet made a decision on the volume and final timing of a possible capital increase.

Wanja S. Oberhof, CEO of Social Chain AG: “After the listing in the Prime Standard of the Frankfurt Stock Exchange, we received extremely positive feedback from the capital market, especially from institutional investors.

This feedback has encouraged us to implement the possible cash capital increase already communicated at the time of the acquisition of DS Group and to place the shares in the short term. This step would also bring more liquidity to the Social Chain share and help to increase the free float.”

The acquisition of DS Group is expected to be completed before the end of December 2021. After completion of the transaction, Social Chain AG expects a total revenue of more than EUR 620 million (proforma consolidated) for the 2021 financial year.

On the basis of the integration of DS Group, Social Chain AG expects considerable growth: already for the financial year 2023, revenue of more than one billion EUR is targeted (see also media release from 19 October 2021).

The newly formed company employs 1,400 people and has a total of 18 global locations, including Berlin, the Hamburg metropolitan region, Munich, London, Manchester, New York, Los Angeles, and Hong Kong.

ocial Chain AG is reshaping the world of brands and commerce with Social Commerce.

Social Chain AG’s headquarters are in Berlin, with additional locations in Munich, London, Manchester, New York and Los Angeles. Social Chain AG shares are being traded on XETRA and other German stock exchanges.

Since 12 November 2021, the shares of Social Chain AG are also listed in the Prime Standard of the Frankfurt Stock Exchange.

www.socialchain.com

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