Decision on delisting
NGM's Nomination Committee has today decided to delist the financial instrument Valour Terra (LUNA) SEK (ISIN: CH1114178804) from trading as of the end of day. The Nomination Committee considers that the instrument cannot be traded in a fair and orderly manner, whereby the prerequisites for continued listing no longer exist. The trading halt imposed on 11 May 2022 will not be lifted by NGM prior to the delisting.
What about now?
The financial instrument still exists but it will no longer be admitted to trading at NGM.
Consequently, it will not be possible to trade in the instrument via NGM.
The aggregate value of the underlying assets Terra (Luna) attributable to all of the issued financial instruments was approximately USD 27 as of 20th of May 2022, at the time 13:31. Converted to SEK, this currently corresponds to approximately SEK 0.00001388 per security.
What happens next?
The issuer Valour has stated in its base prospectus that a delisting of an instrument may be followed by the issuer exercising its opportunity to carry out a redemption, so-called issuer call. The redemption amount is still dependent on the performance of the underlying asset Terra (Luna) and can be determined as low as zero SEK.
Valour believes that there are reasons to wait during a shorter period of time before the issuer makes a decision to carry out a redemption. The aim is to, potentially, access a more reliable basis in order to assess the prospects of a successful restructuring of the underlying asset and with a scale that could noticeably result in a higher redemption amount.
As the financial instruments are delisted today, they may be held in an investment savings account (investeringssparkonto) until the sixtieth day after the end of the quarter in which the delisting took place (i.e. no longer than until the end of August 2022). Valour therefore intends to decide on redemption at a time that allows for the execution of such redemption within such timeframe.
Will it be possible to dispose of holdings before a redemption?
The issuer is currently exploring the possibility of offering repurchase of the financial instruments at the prevailing market value for investors who themselves wish to divest their holdings at an earlier stage. However, this presupposes that the transactions can be settled effectively. Valour therefore intends to return with updated information shortly.
