Authorised share capital increase through the distribution of additional capital and retained earnings

Novabev Group, Russia's largest alcoholic beverage company, announces its intention to increase its authorised share capital using additional capital and retained earnings from previous years.

The authorised share capital will increase by 11.06 billion roubles: 8.85 billion roubles from additional capital and 2.21 billion roubles from retained earnings of Novabev Group.

Each shareholder will receive seven new shares free of charge for each share already held. This will bring the total number of shares in circulation to 126.4 million. At the same time, the shares of Novabev Group shareholders will not be diluted, as the new securities will be distributed proportionally among them.

The decision will have a positive impact on the company's investment attractiveness and will achieve two goals. Firstly, the securities of Novabev Group will be more accessible to a larger number of investors after the increase of the authorized share capital and the eightfold growth of the number of shares in circulation. Thus, the procedure will have a similar effect to a share split, but without splitting the shares by reducing their nominal value. Secondly, the conversion the capital into shares and their transfer to the shareholders of Novabev Group will ensure a more equitable distribution of the value of the company among them.