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Cibus announced on 11 April that the board of directors has decided to withdraw its proposal to issue class D shares through a bonus issue to existing shareholders. According to Cibus, discussions with the larger shareholders indicate that there is currently not sufficient support for the introduction of class D shares, nor the bonus issue. As a consequence, the dividend proposal for existing shares is returned to EUR 0.99 per share versus the combination of EUR 0.75 per class A share and EUR 0.96 per D share (four A shares would have entitled to on D share in the bonus issue). We had expected the introduction of class D shares to increase the financing flexibility for Cibus in its ambitious growth targets and would also have been a tool for the company to reach its investment grade (IG) readiness by the end of 2023. D shares have a fixed dividend and are thus priced as a bond while they are treated as 100% equit y by rating agencies. Hence, without the option of D shares, Cibus will need to finance the equity part of its growth through common equity issuance, in which it has been successful in recent years by issuing shares at a substantial premium to EPRA NRV. D shares would have been a good tool to use in the case that Cibus’ share price would have been momentarily at a lower level as D shares would incur less dilution if common shares are trading at a low price. We do not need to change our estimates following today’s announcement as we have not included any unannounced M&A or the issuance of common or D shares in our estimates. Our fair value range is SEK 260-320 per Cibus share. Marketing material commissioned by Cibus.

Source: Finwire News.

Cibus is a real estate company listed on Nasdaq First North Premier Growth Market in Stockholm. The company's business idea is to acquire, develop and manage high quality properties in the Nordics with daily goods store chains as anchor tenants. The company currently owns about 250 properties in Finland and Sweden. The main tenants are Kesko, Tokmanni, Coop and S-Group.