DigiU Preferred Shares: Conversion Rights

We continue to explore the potential rights of DigiU's preferred shareholders as part of the upcoming reorganization. Today, we’re sharing international practices and explaining how specific investor protection mechanisms may work.

Conversion rights refer to the ability to exchange preferred shares for common shares under pre-established conditions.

In international practice, these rights may include:

Flexible Exit from Investments

Investors can convert shares to participate in the company’s overall growth – for example, ahead of an IPO or another liquidity event.

Fixed Conversion Ratio

In some cases, a formula is applied: 1 preferred share = 1 or 1.5 common shares.

Investor or Company Initiative

Conversion may occur at the investor’s request, the company initiative, or automatically upon predefined events (e.g., a funding round).

Automatic Conversion at IPO

Issuance terms often stipulate that all preferred shares are automatically converted into common shares when the company goes public (IPO).

This mechanism allows investors to adapt to strategic changes, choose the right moment to adjust their ownership structure, and is available exclusively to preferred shareholders.

Please note: The mechanisms described are examples from international practice.

Reminder: The second snapshot of preferred shares will take place on 01.06.2025.

Make any payment by 31.05.2025, 23:59 (UTC) to increase the number of shares in your portfolio.

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