DGAP-Adhoc: PREOS Real Estate AG plans capital increase / Price per share at least EUR 10.00

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PREOS Real Estate AG plans capital increase / Price per share at least EUR 10.00

Leipzig, 14 January 2019 - The Management Board of PREOS Real Estate AG ("PREOS", ISIN DE000A2LQ850) announces that TO-Holding GmbH and TO Holding 2 GmbH exercise today their contractual right to offer PREOS the contribution of shareholder loans granted by them in the amount of EUR 11 million each in return for the issue of new shares of PREOS. The Executive Board of PREOS intends to accept the offers in accordance with the contractual agreements and subject to the approval of the Supervisory Board and to initiate the necessary steps for the implementation of a capital increase through non-cash contributions under authorised capital to the exclusion of the subscription right of the shareholders.

TO-Holding GmbH and TO Holding 2 GmbH are to be authorised exclusively to subscribe and will be able to extend their share in the capital stock of PREOS in this way. Their sole shareholder is the indirect majority shareholder of PREOS, Thomas Olek.

The number of new shares to be issued for TO-Holding GmbH and TO Holding 2 GmbH is to result in accordance with the contractual agreements from the value of the respective non-cash contribution divided by the share price of the PREOS shares (to be calculated in accordance with specific terms and conditions), whereby this share price is to amount at least to EUR 10.00. Against this backdrop the Management Board expects that the capital increase in the amount of EUR 2.2 million will be carried out by issuing 2.2 million new shares of PREOS.

With the capital increase PREOS wants to strengthen its equity base in view of the further growth of the company and, moreover, reduce its annual interest expenses.