Date: 14.12.2023

by Mateusz Mazur

Better Collective Announces Capital Increase Following Employee Warrant Exercise

In the recent warrant exercise window, which spanned from November 16 to November 30, 2023, Better Collective has seen significant employee participation.

The exercise followed the company’s third-quarter report and involved 12 employees choosing to exercise a total of 116,903 warrants under the 2019 warrant program and 26,668 warrants under the 2020 program.

Details of the Warrant Programs

For the 2019 warrant program, the terms and conditions are outlined in schedule 3 of the company’s articles of association. Post-exercise, 805,183 warrants remain outstanding, each allowing the subscription for one ordinary share in Better Collective A/S at an exercise price of DKK 64.78 per warrant.

Similarly, the 2020 warrant program, also detailed in schedule 3 of the articles of association, has 244,998 warrants remaining post-exercise. These warrants grant the right to subscribe for one ordinary share in Better Collective A/S at DKK 106.35 per warrant.

Board’s Resolution and Capital Increase

Better Collective’s Board of Directors has resolved to implement the capital increase associated with the warrant exercises. The new shares will be issued through Euronext Securities under the company’s ordinary ISIN DK0060952240.

They will be listed and tradable on Nasdaq Stockholm and Nasdaq Copenhagen following the registration of the new share capital with the Danish Business Authority.

The issuance of new shares will result in a dilution of approximately 0.26 percent for existing shareholders of Better Collective A/S. Following this issue, the total share capital of Better Collective A/S will be nominally EUR 553,674.18, comprising 55,367,418 shares, each with a nominal value of EUR 0.01.

Our Comment on the Article

The recent developments at Better Collective highlight a strong engagement from its employees in the company’s growth through the exercise of warrants. This move not only reflects the employees’ confidence in the company’s future but also aligns their interests with those of the shareholders. The decision by the Board of Directors to carry out a capital increase in response to the warrant exercise demonstrates the company’s adaptability and commitment to growth.

The dilution effect on existing shareholders is minimal, suggesting a well-balanced approach to capital management. The listing of new shares on prominent stock exchanges like Nasdaq Stockholm and Nasdaq Copenhagen further underscores Better Collective’s standing in the market and its commitment to transparency and liquidity for its shareholders.

This strategic move could serve as an encouraging signal to the market, reflecting the company’s robust internal dynamics and potential for continued growth. The impact of these developments on Better Collective’s market position and investor perception will be an interesting aspect to watch in the coming period.