How Attica Bank’s share was driven by the November 22 extreme fluctuations

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LAST UPDATE: 16:11

The Athens Stock Exchange is trying to explain the new adjusted price and the fluctuation limits in view of the capital increase, in order to clarify the reason for the large fluctuations that existed in the share of Attica Bank at the meeting of November 22, 2021.

However, two announcements were needed in order to clarify the fluctuations in the bank’s share, as well as how the price adjustment came about.

Specifically, it is emphasized that:

The Athens Stock Exchange returns to the issue of the share price of Bank of Attica to clarify the theoretical background for calculating the indicative adjustment price to each share capital increase (AMK) with a cut-off.

The services of the Group calculate the indicative (theoretical) adjustment price of the share for the first day of the cut of the right, based on the decision 26 of the ATHEX, which takes into account the theory in the international literature and the practices in the international capital market.

Then the price adjustment to each such AMK is made by the supply and demand formed in the market on the first day of the cut, based on the information provided by the company through announcements, the prospectus and the terms of the AMK.

According to the above decision 26 ATHEX, the theoretical value used during yesterday’s meeting of 22/11, emerged as follows:

TATT closing price on Friday 19/11 = € 3.95
Number of listed TATT pieces 19/11 = 24.229.445
Capitalization of TATT 19/11 = 95,706,307.75
Number of shares to be issued during the AMK = 1,200,000,000
Issue price of new shares = € 0.2
Funds raised from AMK = € 240,000,000
Number of shares after the successful completion of AMK = 1,224,229,445

With the application of the tick size provided by MIFID II, the theoretical value used during yesterday’s meeting was determined at € 0.2740.

This theoretical value is used in the trading systems of the ATHEX group on the first day of the cut of the right, indicatively to the investing public, as a basis for the valuation of the company after the successful completion of AMK and therefore for the calculation of daily deviations from price to be determined by the market.

As shown above, for its calculation, the capitalization of the company is taken before the cut of the right and the funds that will be raised according to the terms of AMK.

On the first day of trading with the cut of the right, it was done together with the determination of the theoretical starting price of the share and expansion of the limit-up & limit-down limits, according to the provisions of article 2.6.3 of the ATHEX Regulations. and decisions 22 & 26 of the ATHEX. as they apply.

In the previous announcement, the ATHEX stated:

The fluctuation limits of Attica Bank are + 30% at the closing price of the share of the last ATHEX session. (19/11/2021), ie 3.9500 euros and -30% in the adjusted share price resulting from the increase, ie 0.2740 euros.

Analytically:

Custom price: 0.2740 euros

Closing price of the last trading day (19/11/2021): 3,9500 euros

Maximum + 30%: 5.1300 euros

Threshold -30%: 0.1918 euros

Based on the above and taking into account that in the OASIS subsystem – based on the current decision 26 of the Board. of the Athens Stock Exchange – the starting price is the adjusted share price in this case, the upper and lower price limits are as follows:

Starting price: 0.2740 euros

Maximum + 1,772.27%: 5.1300 euros

Threshold -30%: 0.1918 euros

It is reminded here that from 22/11/2021, the shares of Attica Bank are traded on the Athens Stock Exchange without the right to participate in the share capital increase by paying cash in favor of the old shareholders, by issuing 1,200,000,000 new shares, in a ratio of 49, 5265161872259 new shares for each 1 old share, at a share price of 0.20 euros. The exercise period of the pre-emptive right is set from 25/11/2021 until 08/12/2021 and the trading period of the right on the Athens Stock Exchange is set from 25/11/2021 until 03/12/2021.

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