Information for shareholders

Information for shareholders

Shareholder questions and answers

1. What has changed after JSC Grindeks withdrawal from stock exchange in 19.02.2021?

The exclusion of shares from the stock exchange means that it is no longer possible to purchase and sell shares of JSC Grindeks on the stock exchange, as well as the current information about JSC Grindeks is no longer published on the exchange site. Share trading can still be conducted in private deals. Information about the company is posted on the website of JSC Grindeks –

2.To who shares of JSC Grindeks can be sold?

It is possible to sell the shares in private transactions to any interested party holding a securities account by agreement between the parties on the amount of the transaction and other terms.

3.What is the price of shares?

According to the statutes of JSC Grindeks, the nominal value of one of the shares is EUR 1.40. The price of the transaction shall be determined by an agreement.

4.Where can I see the information about JSC Grindeks published on the stock exchange?

All information published on the stock exchange about JSC Grindeks up to 19.02.2021 can be viewed at the following address:

5.Will dividends be paid?

In accordance with the Commercial Law of the Republic of Latvia, the decision regarding the payment of dividends shall be within the competence of the shareholders meeting. Information on shareholder meetings can be obtained on the website of JSC Grindeks – , information about shareholder meetings are placed in the official publication “Latvijas Vēstnesis” and in the newspaper.

6.Can JSC Grindeks repurchase shares?

According to the Commercial Law of the Republic of Latvia, JSC Grindeks is prohibited from buying its shares.

7.Is JSC Grindeks planning to return to the stock exchange?

There is no such decision right now.

8.Where can one ask questions about the shares of JSC Grindeks?

Please follow the current information on the website of JSC Grindeks which could provide answers to all the questions, please write an e-mail to [email protected] if you have any other additional questions.

9. Why have the stocks of JSC Grindeks disappeared from the securities account?

On June 22, 2021 at the regular stockholders’ meeting of JSC Grindeks it was decided to make amendments to the Articles of Association of JSC Grindeks by changing the form of stocks from dematerialized bearer stocks to registered stocks in paper form. Amendments to the Articles of Association have been registered in the Register of Enterprises and came into force on 16.08.2021. In order to transfer the register of stockholders to the Board of JSC Grindeks, the stocks in the financial instruments accounts have been canceled.

10. What does the change of the stock form mean for the stockholder of JSC Grindeks?

The “disappearance” of JSC Grindeks stocks from the stockholders’ financial instruments accounts does not mean the loss of ownership rights to the stocks. In accordance with the Commercial Law, henceforth the stockholders’ register is maintained by the Board of JSC Grindeks and the stocks are no longer listed in the stockholders’ financial instruments accounts. Proof of ownership rights to registered stocks is a record in the register of stockholders. On the basis of a written application stockholders have the right to receive a documentary confirmation from JSC Grindeks regarding the stockholder’s ownership rights to the stocks owned by them (an extract from the register of stockholders and/ or paper registered stock certificate).

11. What to do if stocks need to be alienated?

Pursuant to Article 238 of the Commercial Law of the Republic of Latvia, paper registered stocks shall be alienated by making a transfer note (endorsement) on them. The acquirer of a registered stock shall notify JSC Grindeks of the acquisition of the stock by submitting an application and presenting a paper registered stock with a transfer note (endorsement). A record is made in the register of stockholders, where the data of the new acquirer and other information specified by law are indicated.

12. What would it be advisable for the stockholder to do in order to receive information and dividends from JSC Grindeks more conveniently in the future (if the stockholders decide to pay out such)?

It would be advisable for the stockholders of JSC Grindeks to update their data by submitting the JSC Grindeks stockholder data update questionnaire, filling in the information indicated therein. Otherwise JSC Grindeks will not have at its disposal stockholders’ bank accounts for the payment of dividends to them, as well as due to different postal addresses notifications to them from JSC Grindeks may not reach the stockholder.