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By Shavasb Bohdjalian
The Cyprus Stock Exchange (CSE) has accepted the listing of the Performance Linked Notes of Kappasquare (KPSQ), Zetadynamic (ZETA) and Nugreat (NGRT) on the Emerging Companies Market of the CSE.
Eurivex Ltd., a Cyprus Investment Firm regulated by the Cyprus Securities & Exchange Commission (CySEC) (license 114/10) is the Nominated Advisor for the listings on the Emerging Companies Market of the Cyprus Stock Exchange (ECM/CSE).
Kappasquare Ltd. (KPSQ) listed a total of 17.000 Performance Linked Notes of EUR 100 value for a total value of EUR 1.7 mln on the ECM/CSE. The ISIN code is CY0142400718.
Zetadynamic Ltd. (ZETA) listed a total of 9.000 Performance Linked Notes of EUR 100 value for a total value of EUR 900.000 on the ECM/CSE. The ISIN code is CY0142410717.
Nugreat (NGRT) listed a total of 23.000 Performance Linked Notes of EUR 100 value for a total value of EUR 2.3 mln on the ECM/CSE. The ISIN code is CY0142390711.
The trading of the aforementioned securities commenced on Friday, March 30, 2012 and the Cyprus Stock Exchange has undertaken the observance of their registries in the Central Depository/Registry of the CSE.
The Performance Linked Notes, which are available for investment to only Professional investors as defined under MiFID rules are unsecured, non-guaranteed financial instruments whose value and future performance depend exclusively on the performance of the underlying asset in which the funds raised are invested.
Eurivex is acting as Reporting Agent in reporting the Net Asset Value (NAV) of the underlying asset to the Cyprus Stock Exchange. The reporting of the NAV for KPSQ, ZETA and NGRT will be made on a weekly basis. At launch, the NAV of all three Issuers was EUR 100. Information on the latest NAV is available in English from the CSE’s web site (http://www.cse.com.cy/NEA/Main/).
The Performance Linked Notes can be issued by a private company based anywhere in the world. Once the Notes are issued, they can be listed on the ECM/CSE under simplified listing rules. The ECM is a Multilateral Trading Platform (MTF) operated by the CSE, a regulated by CySEC entity.
One of the key advantages of the ECM/CSE is that according to listing rules, there is no obligation for daily volume to occur on the financial instruments listed, which in the case of the Performance Linked Notes, means that only the NAV changes according to the reporting schedule, allowing investors timely information and access to the valuation of the underlying asset in which the proceeds of the Notes have been invested.
All the relevant details with respect to where the funds are invested are included in the Admission Document (Prospectus), which also includes relevant data on the Issuer, its shareholder and director(s), the company’s advisors and the investment strategy pursued in addition to all the relevant risk warnings.
In case the proceeds of the funds raised are intended to be invested in derivatives trading, then it is obligatory to also reveal the details of the regulated investment manager who will manage the Trading Account held with the Bank or financial institution when the Issuer is a Cyprus or EU based entity. When the investment is in an asset category which does not fall under the MiFID rules, such as real estate, a shopping mall, or a factory, then there is no obligation to appoint a regulated investment manager.
(Shavasb Bohdjalian is a certified Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10 and approved by the Cyprus Stock Exchange to act as Nomad for listings on the Emerging Companies Market. Eurivex offers complete packages and solutions for all types of listings on the ECM/CSE. The views expressed above are personal and do not bind the company and are subject to change without notice)
