Zurich, January 9, 2019
Letter to Shareholders
At the Extraordinary General Meeting of Balluun AG held in Dübendorf on January 4, 2019, the shareholders approved the capital increase proposed by the Board of Directors, thus paving the way for Balluun's successful future. In particular, the proposals under agenda item 2 (e) and agenda item 2 (h), which were amended during the discussion at the Extraordinary General Meeting, were approved as follows:
Agenda item 2. (e)
Total issue price: the issue price for each 'New Share' is CHF 0.20 and the total issue price for the 'New Shares' is up to CHF 16,000,000. The issue price shall at least amount to CHF 0.20. The difference between the total nominal value and the total issue price of the 'New Shares' shall be allocated to the reserves from capital contributions.
Agenda item 2. (h)
Limitation or withdrawal of the preferential subscription right and allocation of unexercised or withdrawn preferential subscription rights: no exclusion of preferential subscription rights.
Preferential subscription rights that have not been exercised are allotted by the Board in the interest of the Company and by ensuring equal treatment of the shareholders, to other investors that agree to provide capital to the Company at short notice.
Attractive valuation of the 'New Shares'
The Board of Directors of Balluun AG considers that the valuation underlying the capital increase and the issue price of CHF 0.20 per 'New Share' of Balluun AG offers an attractive opportunity for an investment in Balluun. In addition, existing shareholders have the possibility to reduce the dilution of their Balluun stake with the preferential right, which goes beyond the subscription right to subscribe for the 'New Shares'. All registered shareholders will receive in the next few days a notice with the documents for the subscription of the 'New Shares' of Balluun AG. Take advantage of this opportunity to expand your investment in Balluun at attractive conditions!
One-of-a-kind combination of B2B e-commerce and social e-commerce
As stated at the Extraordinary General Meeting, Balluun, with its successful solutions for the global B2B e-commerce market and the strategic strengthening of its offering in the B2C segment with Saigara's innovative social selling expertise, has attractive potential for above-average, profitable growth in the global social e-commerce market. In November and December 2018, Saigara achieved sales of over CHF 900,000 per month, mainly in Germany, and now aims to expand into new markets.
Focused management structure
In order to take full advantage of the significantly strengthened potential offered by the integration of Saigara, the Board of Directors of Balluun AG has realigned responsibilities in management with effect from January 1, 2019. Roger R. Müller becomes Chief Executive Officer and is responsible for the operational management of Balluun. As an Executive Member of the Board of Directors, the former Chief Executive Officer Roland Kümin concentrates on dialogue with shareholders and investors and on strategic projects with key accounts. The Executive Board of Balluun consists of Roger R. Müller and the Chief Operating Officer Deepak Gupta. The Executive Board is supported by the Management Board consisting of Isabelle Weber, VP Finance, Michelle Ma, VP Marketing, and Tim Lambert, VP Global Sales.
Christopher J. Blackwell, Chief Strategy Officer, has decided to leave Balluun. The Board of Directors and Executive Committee would like to thank him for his great contribution and wish him the very best for the future.
Roger R. Müller
Chief Executive Officer
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