Icelandair Group (the “Company”) issued warrants to all investors who received shares in the Company’s share offering that concluded on 17 September 2020. The warrants consist of three separate classes, each with a different ticker symbol and exercise period, as described in the prospectus, dated 8 October 2020 (the “Prospectus”).
The class of warrants with ticker symbol ICEAIRW130821 and ISIN IS0000032266 (the “Warrant Class”) will be exercisable in August 2021 as further described below. The closing date of trading in the Warrant Class will be Friday 30 July 2021. Given settlement rules this means that registered holders of the Warrant Class as of 4 August have a right, without any obligation, to purchase shares in the Company at an exercise price of 1.13 ISK per share during the exercise period.
The Board of Directors has decided the terms of the transaction exercise as stipulated in the Prospectus. Holders of the Warrant Class will be contacted by their respective custodian
(icel: vörsluaðili) regarding payment instructions, which can take the form of a payment invoice (icel: innheimtukrafa) that are optional for holders to pay, or another form of subscription and payment as decided by each custody financial institution.
Payment of the optional invoice represents both a subscription for and payment of new shares in the Company. By not paying the optional invoice a holder is declaring that they do not intend to exercise their right according to the Warrant Class, which will then lapse and become void. Any holdings in warrant classes ICEAIRW180222 and ICEAIRW120822 would in such a case nonetheless remain valid. Payment shall be made no later than Thursday 19 August 2021. Payment by the custody financial institutions to the Company shall be no later than Monday 23 August 2021.
Investors are advised that the difference between the exercise price and the closing price of the Company’s shares at the respective payment date is subject to taxation. For individuals the difference is subject to capital gains tax (icel: fjármagnstekjuskattur) and shall be declared in field 522 in their tax statements for the fiscal year 2021. For legal entities the difference is generally subject to income tax and shall be declared in field 3637 in said statement.
For warrants purchased in the secondary market, i.e. not received free of charge as part of allocation of shares in the September 2020 share offering, holders are allowed to deduct the purchase price of the warrants from the closing price of the shares at the payment date when calculating the taxable income from exercising the warrants.
Investors who are in any doubt as to their personal tax position, are strongly advised to seek appropriate professional advice thereto. The Company does not assume any liability for the correct declaration of taxable income in respect of these or any warrants it has or may issue.
Icelandair Group will issue new shares in the Company corresponding to the total exercised warrants. Delivery of the new shares along with admittance to trading on Nasdaq Iceland‘s regulated market is expected to take place on or before Tuesday 31 August 2021.
For further information regarding the warrants reference is made to the full Prospectus.
Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail: email@example.com
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