The Board of Era Portfolio Investments Ltd. during its meeting yesterday examined the various developments concerning Kyknos Investment Co. Ltd. and decided the following:
1. The securing of 50% plus 1 share of the share capital of Kyknos for which the public offer was made has not been achieved as the shares and warrants offered together with the shares and warrants held by the company are less than the aforementioned percentage. Therefore the public offer is void. This is mainly attributed to the fact that Sharelink Financial Services Ltd. and persons acting in cooperation with it, have secured more than 50% of the share capital of Kyknos and this is derived from the announcement of the Board of Kyknos as well, concerning its capital disbursement. The Board wishes to thank the 1.104 shareholders of Kyknos for accepting Era’s public offer. These shareholders together with the thousands of others who did not accept Era’s offer and with the other companies of the Elma group remain enclaved as Sharelink’s intention is the removal of Kyknos from the CSE.
2. Despite the fact that the Securities & Exchange Commission decided that Sharelink has the legal obligation to offer to all shareholders of Kyknos the amount of CYP 1.21 per share and 38 cents per warrant, it is unwilling to take all necessary legal measures to impose its decision, stating that it does not have the flexibility under present legislation. Era disagrees with this view, as the law refers not only to the imposition of penalties up to CYP 2.000 as was imposed by the SEC but and up to CYP 500 per day that such violation is continuing. Article 8 of the law which the SEC refers to and based on which it imposed the fines of CYP 2.000 clearly state the following:
“Imposition of penalties in cases where breaches are confirmed, up to CYP 2.000 or up to CYP 500 per day of continued breach practises”.
It is evident that the SEC either made its decisions not knowing this provision, something which the company does not wish to believe, or it is unwilling to impose substantial penalties which would have protected Kyknos shareholders as it ought to.
Due to the above, Era has instructed its legal counsel to proceed with all necessary measures against the SEC.
3. The company has also instructed its legal council to proceed with an suit against Sharelink and persons acting in cooperation with it, to seek the payment of CYP 1.21 for each share of Kyknos and 38 cents for every Kyknos warrant, in accordance with the decision of the SEC. All Kyknos shareholders have this right and the company advises them to refer to their legal counsel.
1. The securing of 50% plus 1 share of the share capital of Kyknos for which the public offer was made has not been achieved as the shares and warrants offered together with the shares and warrants held by the company are less than the aforementioned percentage. Therefore the public offer is void. This is mainly attributed to the fact that Sharelink Financial Services Ltd. and persons acting in cooperation with it, have secured more than 50% of the share capital of Kyknos and this is derived from the announcement of the Board of Kyknos as well, concerning its capital disbursement. The Board wishes to thank the 1.104 shareholders of Kyknos for accepting Era’s public offer. These shareholders together with the thousands of others who did not accept Era’s offer and with the other companies of the Elma group remain enclaved as Sharelink’s intention is the removal of Kyknos from the CSE.
2. Despite the fact that the Securities & Exchange Commission decided that Sharelink has the legal obligation to offer to all shareholders of Kyknos the amount of CYP 1.21 per share and 38 cents per warrant, it is unwilling to take all necessary legal measures to impose its decision, stating that it does not have the flexibility under present legislation. Era disagrees with this view, as the law refers not only to the imposition of penalties up to CYP 2.000 as was imposed by the SEC but and up to CYP 500 per day that such violation is continuing. Article 8 of the law which the SEC refers to and based on which it imposed the fines of CYP 2.000 clearly state the following:
“Imposition of penalties in cases where breaches are confirmed, up to CYP 2.000 or up to CYP 500 per day of continued breach practises”.
It is evident that the SEC either made its decisions not knowing this provision, something which the company does not wish to believe, or it is unwilling to impose substantial penalties which would have protected Kyknos shareholders as it ought to.
Due to the above, Era has instructed its legal counsel to proceed with all necessary measures against the SEC.
3. The company has also instructed its legal council to proceed with an suit against Sharelink and persons acting in cooperation with it, to seek the payment of CYP 1.21 for each share of Kyknos and 38 cents for every Kyknos warrant, in accordance with the decision of the SEC. All Kyknos shareholders have this right and the company advises them to refer to their legal counsel.
Wednesday, 21 March, 2001 - 00:00