The regulator denied Veres an additional share issue. This would have saved the club from bankruptcy

The National Securities and Stock Market Commission (NSSMC) has refused to allow Rivne People's Club Veres PJSC to issue additional shares for UAH 81.7 million. This was reported by the regulator's press service.

Photo: Veres press service

The football club is under rehabilitation and is trying to avoid bankruptcy. According to the rehabilitation plan, the club was supposed to increase its share capital through an additional issue of shares to be distributed among its creditors.

The regulator explained the decision to refuse to issue shares by saying that "the agreements concluded with the persons who are participants in the placement, which resulted in monetary obligations of the PJSC, were not approved by the relevant body of the company (the club - Ed.) in accordance with the procedure established by the Law of Ukraine "On Joint Stock Companies".

"Veres was the first professional football club in Ukraine to list its shares on the stock exchange: in 2021, the club raised UAH 50 million through an IPO on the PFTS. In November 2023, the court opened bankruptcy proceedings against Veres at the request of Bazysprombud Construction Firm LLC.

"Bazysprombud is the general contractor for the construction of the Veresa training base. In 2021, the company was selected to build two full-size fields with artificial and natural turf in Rivne. "Veres owes the contractor UAH 52.27 million, plus UAH 2.44 million in penalties.

In February 2024, a committee of creditors led by Bazyspromstroy agreed on a rehabilitation plan that provides for debt forgiveness in exchange for entering the club's share capital. To this end, Veres will have to increase its share capital through an additional issue of shares into which Veres' cash liabilities will be transferred.

In addition to Bazyspromstroy, Veres owes UAH 2 million to Veres Security LLC and UAH 27.5 million to an unspecified individual.

As of February this year, the authorised capital of Veres was UAH 56 million, with the club's president Ivan Nadein holding a 32.2% stake.

We remind you that Veres is on the verge of relegation to the First League with one round to go in the Ukrainian championship.