The Board of Directors exercises its power to increase share capital in relation of acquisition of Red Carpet

July 16, 2020

The second phase of the acquisition, equivalent to 49% of the share capital, was finalised for a value of €147,000. The total value of the transaction is €300,000.

The Board of Directors of Iervolino Entertainment SpA (hereinafter “Iervolino Entertainment”), a company working in the production of film and television content for the international
market and listed on the Borsa Italiana AIM Italia market, which was convened to exercise the powers laid out in art. 2443 of the Italian Civil Code, today used its power to increase the share capital by 26,250 ordinary shares as part of the acquisition of 100% of R.E.D. Carpet Srl (hereinafter ” Red Carpet”), a company specialising in VIP casting and in the creation of video content for television and the web.

The capital increase, excluding option rights and reserved for Red Carpet shareholders, was approved by way of the transfer of their residual stake in Red Carpet to Iervolino Entertainment, corresponding to a nominal amount of €4,900 of the share capital, representing 49% of the total, as part of the conclusion of the investment contract signed between the parties on 11 June 2020, which was the subject of a press release on the same date. It should be noted that, pursuant to art. 2443, paragraph 4, of the Italian Civil Code, the transfer in question will not be effective until a thirty-day period has elapsed from the date that the share capital increase resolution was recorded in the business register, which also contains the declarations pursuant to art. 2343-quater, paragraph 3, letters a), b), c) and e) of the Italian Civil Code.

The declaration required by art. 2343-quater, paragraph 3, letter d) of the Italian Civil Code and the certification referred to in art. 2444 of the Italian Civil Code will be filed in the business register by the directors after the aforementioned period. The 26,250 ordinary shares will be issued at a unit price of €5.6 for a total value of €147,000 (of which €1,050 is an increase in the share capital and €145,950 is an increase in the share premium reserve) and will be subject to a 36-month lock-up period. The capital increase concludes the acquisition of the entire share capital of Red Carpet by Iervolino Entertainment, following the initial purchase of 51% completed on 11 June this year. The total value of the transaction is therefore €300,000. The newly issued shares will give the relevant subscribers the same rights as the holders of the Iervolino Entertainment ordinary shares currently in circulation, and will be admitted to trading on AIM Italia.