Varengold Bank AG
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Hamburg, May 14th , 2014 – Varengold Bank AG (WKN 547930) has launched a capital increase against cash contribution under exclusion of subscription rights to the extent of 159.571 par value bearer shares from the authorized capital approved at the extraordinary general meeting from January 15th, 2014. The new shares were placed at a strategic investor with an issue price of EUR 20.00 per share, resulting in a cash inflow of 3,191,420.00 EUR.
The proceeds from the share placement fully benefit to the company and will be used to further expand the business opportunities of Varengold Bank AG. The relevant documents were signed by the parties and short-term passed by the company to the register court for registration
Looking back on the year 2013, the business of Varengold Bank AG was particularly marked by significant special effects regarding the enlargement of license for conducting banking business. Even the difficult circumstances of the global financial markets were noticeable for the company.
According to preliminary, unaudited figures Varengold Bank AG concluded the financial year 2013 with an annual deficit of approximately EUR -3.7 million. Due to the continued low levels of managed customer deposits (AuM), the contribution to earnings stagnated in the business field Asset Management during the period under consideration. The branch Capital-Markets-Brokerage generated an over the previous year nearly identical result. In addition, the fiscal year was impacted by significant administrative expenses in all fields of business, which were necessary for the expansion of Varengold as a commercial bank and its future realignment. For example, a complex core banking system has been implemented in order to handle future business activities in the newly established division Commercial Banking. This sector was initially focused on the development of business relationships with numerous domestic and foreign corporate clients. The range of products for new and existing customers was also expanded, so that i.e. Varengold offers free instant access savings accounts for private clients since mid-March 2014.
The necessary investments to adapt and expand the infrastructure of Varengold Bank AG as of today’s commercial bank do currently not offset with sufficient income. However, the board of managing directors recognizes on the current assessment over the course of the year a sustainable and satisfactory growth potential.
Varengold Bank AG will publish its audited annual financial statement in June 2014.
Varengold Bank AG
+49 (0)40 / 668649-0
+49 (0)40 / 668649-49
Regulated Unofficial Market in Berlin, Duesseldorf, Stuttgart;