The Romanian Financial Supervisory Authority has approved the Universal Prospectus of Bittnet (BNET), the first such document ever issued on the Romanian capital market.
The new EU Prospectus Regulation, and implementing measures, is applicable as of 21 July 2019. Under the revised rules, a new document, known as the “Universal Registration Document” (URD) was created. The goal behind the Universal Registration Document is to accelerate the prospectus approval process for frequent issuers.
Bittnet prepared and submitted the Universal Prospectus for ASF’s approval to simplify and speed up the process of a future public offering of securities. From now on, for any new offer of financial instruments issued by Bittnet, regardless of their type or class, the company only needs to prepare a securities note and a summary. Bittnet’s intends to benefit from this solution in the course of the next 12 months, for carrying out a capital increase as well as to run an offer for Bittnet’s preferential shares.
“Over the past five years, Bittnet has been one of the most active issuers on the Romanian capital market. We have brought several premieres to the BVB, and we are pleased to do it again. Following our transfer to the Main Market, we decided to benefit from the provisions of the EU Prospectus Regulation to be able to issue new instruments more dynamically than before. We thank the Financial Supervisory Authority for their assistance in this process, and we will glad to see if also this example is followed by other issuers” said Cristian Logofatu, co-founder of Bittnet (photo R).
Under the EU Prospectus Regulation, frequent issuers are incentivized to draw up their prospectus as separate documents, since that can reduce their cost of compliance with this Regulation and enable them to react to market windows swiftly. Thus, since July 2019 issuers whose securities are admitted to trading on regulated markets or MTFs have an option to draw up and publish every financial year a universal registration document containing legal, business, financial, accounting and shareholding information and providing a description of the issuer for that financial year.
Drawing up a universal registration document enables the issuer to keep the information up-to-date and only to add a securities note and a summary of the offering when market conditions become favourable for an offer of securities to the public. The universal registration document acts as a source of reference on the issuer, supplying investors and analysts with the minimum information needed to make an informed judgement on the company’s business, financial position, earnings and prospects, governance and shareholding.