Increase of Share Capital in Connection with Realisation of the Staff Options Programme and Subscription Results

The Supervisory Board of AS LHV Group decided to increase the share capital of the Company by EUR 435,619. The increase of the share capital was triggered by the need to issue new shares to staff members participating in the share options programme approved with the resolution of the general meeting on 13 March 2020. A total of 138 current and former employees of LHV participated in the issue of AS LHV Group shares, subscribing a total of 4,356,190 shares for a total of EUR 4,020,763.37. The share issue was 100% subscribed.

Decisions of the Supervisory Board of LHV Group:

• LHV Group's share capital will be increased by EUR 435,619, i.e., from EUR 31,983,274.30 to EUR 32,418,893.30.
• Within the framework of the increase of the share capital, LHV Group will issue 4,356,190 new ordinary shares with a nominal value of EUR 0.1 per share. The shares will be issued with a share premium. The issue price is EUR 0.923 per share, with the nominal value of the share amounting to EUR 0.1 and the share premium to EUR 0.823.
• Pursuant to the resolution of the general meeting of 13 March 2020, which approved the LHV Group's share options programme and its basic conditions, the management and equivalent staff as well as key employees of the companies incorporated within the LHV consolidation group, as determined by the Company's Supervisory Board and with whom the Company has concluded the relevant option agreements (option beneficiaries), shall have the pre-emptive right to subscribe the Company's new shares.
• LHV Group's shareholders, who are not intended to benefit from share options programme, shall not have any pre-emptive right to subscribe LHV Group's shares within the framework of the increase of the share capital.
• The increase of the share capital and payment for the new shares will be carried out fully by way of monetary contribution. The due date for exercising the pre-emptive right of subscription and the due date for subscribing shares was 30 April 2024 at 5.00 pm.
• All of the option beneficiaries submitted their subscription notes in a timely manner and made payments for the subscribed shares.
• The increase of the share capital will not trigger any specification of the LHV Group's ordinary shares, and will not grant any special rights. The new shares to be issued will grant the right to receive dividends starting with the 2024 financial year.
• The emission of new LHV Group shares was subscribed to in full and there is no need to cancel unsubscribed shares. The increase of the share capital in the amount subscribed to by the option beneficiairies will be registeres in the Estonian Central Register of Securities (Nasdaq CSD) and in the Commercial Register.

All new shares issued by LHV Group within the framework of the issue of shares will be listed on the Nasdaq Tallinn Stock Exchange on the day following the day on which the Estonian Central Register of Securities (Nasdaq CSD) will rank pari passu the additionally issued shares with temporary ISIN-code with all the existing shares with the main ISIN-code.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. LHV employs more than 1,090 people. As at the end of March, LHV’s banking services are being used by 428,000 clients, the pension funds managed by LHV have 120,000 active clients, and LHV Kindlustus protects a total of 164,000 clients. LHV Bank, a subsidiary of LHV Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priit Rum

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