CR_14_2017 - Resolution adopted by the Annual General Meeting of the Issuer’s subsidiary to increase its share capital and apply for admission of its shares to the alternative trading system – NewConnect (15.05.2017 godz. 3:28 PM)

LARQ S.A. CURRENT REPORT 14/2017 Subject:

Resolution adopted by the Annual General Meeting of the Issuer's subsidiary to increase its share capital and apply for admission of its shares to the alternative trading system - NewConnect.

General Legal Basis:

Article 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

Text of Report:

The Management Board of LARQ S.A. of Warsaw (hereinafter: "Issuer") hereby informs that, on 15 May 2017, the Annual General Meeting of the Issuer's subsidiary

- NEXTBIKE POLSKA S.A. of Warsaw ("NEXTBIKE") i.a. passed a resolution to increase its share capital and to dis-apply the subscription rights, and to authorise the Management Board of NEXTBIKE to enter into an agreement for registration of shares with the depository for securities, and to amend the Articles of Association of NEXTBIKE.

Under the resolution adopted by it, the share capital of NEXTBIKE was increased from PLN 102,000 up to at least PLN 102,000.10 but no more than PLN 107,100, i.e., by an amount that cannot be less than PLN 0.10 and cannot exceed PLN 5,100. The share capital is to be increased through issuance of no less than one but no more than 51,000 bearer shares of series C. All subscription rights to the series C shares have been dis-applied. The Management Board of NEXTBIKE was authorised to set the issue price of the fresh issue of series C shares. The shares of series C will be subscribed in private placement to be held otherwise than in public offering.

In addition, the Annual General Meeting authorised the Management Board of NEXTBIKE to enter into an agreement for registration of NEXTBIKE shares, following their conversion into bearer shares, with the depository for securities operated by the National Depository for Securities, and to apply for admission of its shares of series B and C to the alternative trading system - NewConnect operated by the Warsaw Stock Exchange.

The Issuer estimates that NEXTBIKE shares should be admitted to the alternative trading system - NewConnect at the latest during the second half of 2017.

Report Date:

15 May 2017

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