Bittnet (BNET), a group of IT companies listed on the Bucharest Stock Exchange (BVB), wants to increase its share capital by approximately RON 17 million (EUR 3.5 mln) and distribute free shares to shareholders.

The decisions will be subject to the shareholders' approval on April 27.

The company currently has a share capital of RON 22.9 mln (EUR 4.7 mln).

If the measure is approved, Bittnet shareholders will receive six free shares for every ten shares held. The shareholders will also get to choose between a cash dividend of RON 0.1 or an additional free share for every ten shares held.

"Since the company's listing in 2015, the annual capitalization of our profits has supported our development. As a growing company, we want to reinvest our capital in both local and international markets. For 2021, in the context of taking over a stake in the Czech company Servodata, we look forward to making our mark on the Central and Eastern European market. We expect this first cross-border transaction to be the basis from which to show our shareholders that we are living up to our promise - to reach a turnover of EUR 100 million in the next four years," commented Mihai Logofatu, CEO and co-founder of Bittnet Group.

This year, the group hopes to increase its turnover by 45% to RON 157 mln (EUR 32 mln) and reach a gross profit of RON 12.8 mln (EUR 2.6 mln).

In 2020, the group recorded a consolidated turnover of RON 108 mln (EUR 22 mln), up 9% compared to 2019, and a gross profit  of RON 330,000 (EUR 67,000). Bittnet's market capitalization is currently RON 162 mln (EUR 33 mln).

andrei@romania-insider.com

(Photo source: the company)