NFON AG: NFON AG creates further scope for M&A activities

Corporate News

NFON AG creates further scope for M&A activities

- NFON decides to issue a warrant bond against cash contribution with Active Ownership Fund, Luxembourg

- Bond amounts to EUR 5 million with one warrant entitling the holder to subscribe to 964,015 new shares at EUR 11.00 per share

- Additional financial resources totalling EUR 15.6 million in the event of exercising the option strengthen short-term ability to act

Munich, 1 July 2019 - NFON AG (together with its subsidiaries "NFON" or the "company"), the only pan-European cloud PBX provider (telephone system from the cloud), is creating further scope for M&A activities to secure market shares in the European growth market for cloud telephony.

With the approval of the Supervisory Board, the company has decided today to issue a warrant bond with a nominal value of EUR 5,000,000 by way of a private placement to Active Ownership Fund SICAV-FIS SCS, Luxembourg, (AOC) excluding shareholders' subscription rights. For a term up to and including January 2, 2020, the bond bears interest of 6.00% p.a. The bond will be issued together with a warrant entitling the AOC to subscribe 964,015 bearer ordinary shares from conditional capital of NFON AG with a share of the share capital of EUR 1.00 per share attributable to each share. The exercise price is EUR 11.00 per share. If the option is exercised in full, NFON AG will receive issue proceeds of approximately EUR 10.6 million from a capital increase from conditional capital.

"The European market for cloud telephony is highly fragmented. This clearly offers us very attractive opportunities. Targeted acquisitions are therefore an important part of our growth strategy. We have a well-filled long and short list of possible acquisition targets. However, financially strong investors and companies have also discovered the attractiveness of the market for themselves and are increasing their acquisition activities. Especially in this situation, speed and flexibility are essential factors for the successful execution of an acquisition. The entry of AOC as an investor and partner will significantly strengthen our ability to act in this regard," explained Hans Szymanski, CEO & CFO of NFON AG.

Florian Schuhbauer, founding partner of AOC, said: "NFON is well positioned in the rapidly growing cloud telephony segment and has great potential as a platform to contribute to market consolidation. As a value investor, the company fits perfectly into our investment focus and we look forward to providing long-term management support".

Investor Relations Contact

NFON AG
Sabina Prüser
Head of Investor Relations
+49 89 45300 134
sabina.prueser@nfon.com

Media Contact

NFON AG
Thorsten Wehner
Vice President Public Relations
+49 89 45300 121
thorsten.wehner@nfon.com

About NFON AG

Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider - counting more than 30,000 companies across 15 European countries as customers. With Cloudya, NFON offers an easy-to-use, independent and reliable solution for advanced cloud business communications. Further premium and industry solutions complete the portfolio in the field of cloud communications. With our intuitive communications solutions, we enable European companies to improve their work a little, every single day. NFON is the new freedom in business communication. http://www.nfon.com/

Disclaimer

This communication is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities of the Company. The securities discussed herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act. There will be no public offering of the securities discussed in this release in the United States of America and the information contained in this release does not constitute an offer of securities for sale. This announcement is not for distribution, publication or transmission, directly or indirectly, to or within the United States of America, Australia, Canada, Japan or any other jurisdiction in which such distribution is unlawful, or to U.S. persons.