Mexico City, August 26th, 2021 – Hoteles City Express, S.A.B. de C.V. (“Hoteles City Express”) (BMV: HCITY) is pleased to announce that by means of the Ordinary General Shareholders’ Meeting of Hoteles City Express, S.A.B. de C.V. (“HCE” or the “Company“) held on July 21st, 2021 (the “Meeting“), among other matters, approved a capital increase through the issuance of 185,714,285 ordinary, common, nominative shares, with full voting rights, single series and without par value (the “Shares“) at a total subscription price of $7.00 pesos per share and a total amount of up to $1,300,000,000.00 (one billion three hundred million pesos 00/100 Mexican pesos) (the “Increase“).
Pursuant to Article 132 of the General Corporations Law (Ley General de Sociedades Mercantiles), the preemptive period during which shareholders could exercise their Preemptive Rights and Additional Preemptive Rights began on August 11th, 2021, and concluded on August 25th, 2021 (the “Preemptive Period“).
In consideration of the foregoing, the investing public is informed that:
A. Pro rata. During the Preemptive Period, the Company’s shareholders subscribed a total of 24,358,814 shares representative of the capital stock of the Company subject to the Increase, in exercise of their Preemptive Rights in proportion to (or below) their stock ownership, for a total amount of $170,511,698.00.
B. Remaining Shares. Since the Capital Increase was not subscribed and paid for by all of the Company’s shareholders based on their pro rata participation during the Preemptive Period, the number of Remaining Shares available for subscription and payment in exercise of the Additional Preemptive Right is 161,355,471.
C. Additional Preemptive Rights. During the Preference Period, HCE received Additional Preference Notices to subscribe and pay for a total of up to 12,799,899 shares representing the capital stock of the Company, for a total amount of $89,599,293.
Likewise, it is reported that, as part of the Increase, members of the Board of Directors and the management team of HCE participated in the subscription and/or oversubscription of a total of 3,556,095 shares, which represented an amount of $24,892,665.
As informed in the various notices published by the Company in connection with the Increase, in the coming days HCE will notify in writing to each of the shareholders who exercised the Additional Preference Right (i) the number of Remaining Shares allocated to each of such shareholders based on the Additional Preference Notices delivered, and (ii) the total amount that each of such shareholders must deliver upon subscription and payment of the Remaining Shares allocated to them.
D. Payment of Pro Rata Shares and Remaining Shares. The Pro Rata Shares and the Remaining Shares to be subscribed by the shareholders in exercise of the Preemptive Rights and the Additional Preemptive Rights must be paid between August 30th, 2021 and September 1st, 2021.
HCE will inform the investing public of the Capital Increase definitive results, considering the final number of shares subscribed and effectively paid as part of it (including, the subscription and payment of the Remaining Shares) as soon as all of the Pro Rata Shares and the Remaining Shares are subscribed and paid, which shall be no later than September 2nd, 2021.
This notice does not constitute an offer to sell or a tender offer to acquire the securities described above.
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Investor Relations Contact Details
Héctor Vázquez
Corporate Finance and IR
Phone: +52 55-5249-8067
E-mail: hvazquez@hotelescity.com
Ana María Ybarra
Miranda IR
Phone: +52 55-3660-4037
E-mail: ana.ybarra@miranda-ir.com