Sirma Group Holding will increase the capital of Ontotext by BGN 977.9k (NEUTRAL)

The shareholders meeting of Ontotext, a subsidiary of Sirma Group Holding has approved to increase its capital by issuing 843 030 new shares with nominal value of BGN 1 per share, and issue price of BGN 1.16 per share, which are to be subscribed by the holding company. The company has 11 038 684 ordinary and 4 187 087 class A shares, both classes of shares have a nominal value of BGN 1 per share. On a separate note, Ontotext has signed a consultancy contract to facilitate the process of attracting an investor in the company. Ontotext EBITDA for the 9mo’16 is BGN 1.5m (+13% YoY), on sales of BGN 3.7m. Net profit is was BGN 0.2m, due to significant amortization expenses.