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Romania's Bittnet raises 9.7 mln lei (2.1 mln euro) from bond issue on Bucharest bourse

Romania's Bittnet raises 9.7 mln lei (2.1 mln euro) from bond issue on Bucharest bourse Bittnet Systems debut on BVB AeRO market, April 15, 2015 Author ( License: all rights reserved.

BUCHAREST (Romania), December 28 (SeeNews) - Romanian IT group Bittnet Systems [BSE:BNET] said on Friday it has raised 9.7 million lei ($2.4 million/2.1 million euro) following a successful corporate bonds sale through private placement on the main market of the Bucharest Stock Exchange (BVB).

The company obtained the amount from 20 individual investors and one legal person, it said in a statement filed with the BVB.

During this process, 21 transactions totaling 97,037 nominative, de-materialized, corporate, unconvertible, unsecured bonds, with a face value of 100 lei per bond, were settled through BVB mechanisms.

The bonds [BSE:BNET23A] have the maturity at five years and a fixed interest rate of 9% per year, payable semi-annually.

The company will use the funds raised in the issue to finance the integration of recently acquired local peer Crescendo International into the Bittnet Group structure.

Bittnet bought Crescendo International in October for 10.9 million lei.

In August, Bittnet signed a contract to buy a 25% stake in game-based learning local firm Equatorial Gaming, using the proceeds of a private placement of corporate bonds. The placement was successfully closed at the beginning of July, raising 4.7 million lei.

In July, Bittnet signed an agreement for the acqusition of a controlling stake in IT company Elian Solutions. In the third quarter of 2017, Bittnet acquired GECAD NET, an IT services integrator, which is now present on the Romanian market under the dendrio brand.

Bittnet was founded in 2007 by Mihai and Cristian Logofatu. The company focuses on IT training and delivering end-to-end IT infrastructure services and solutions from companies like Cisco, Microsoft, Dell, VMware and HP, among others.

It was the first Romanian IT company to be listed on the Alternative Trading System (AeRO) of the Bucharest Stock Exchange (BVB), in April 2015.

Shares of Bittnet traded f5.09% at 1.1350 lei as at 1349 CET on Friday on the BVB.

(1 euro=4.6581 lei)