According to Elcoteq’s Articles of Association, which was amended on February 23, 2010, the Board of Directors is authorized to increase the issued share capital in whole or in part, from time to time, through issues of Series A shares within the limits of the authorized capital (the maximum capital is 40,000,000.00 euros, including the issued capital).
The Board of Directors is authorized to issue new shares and convertible debt instruments within the authorized share capital of the company without reserving preferential subscription rights for the existing shareholders, up to an amount of 12,000,000 euros of the authorized share capital, which corresponds to a maximum of 30,000,000 new series A shares.
The Board of Directors is further authorized to issue new shares and convertible debt instruments within the remainder of the authorized share capital of 19,055,126 euros respecting the existing shareholders’ preferential subscription rights which corresponds to approximately 47,000,000 new series A shares .