Velgraf Asset Management AD (BUL:1VX) made an offer to acquire remaining 38.08% stake in Toxotis Investments Public Ltd. (CSE:COV) in cash for €0.28 million on May 22, 2014. The obligation for the submission of a mandatory takeover bid was activated by the acquisition of 12.8 million shares at the price of €0.035 per share from the Velgraf Asset Management AD. For the payment of the proposed consideration, the Velgraf have proceeded with all necessary arrangements with a banking institution. The transaction is subject to safeguarding all necessary permits and approvals by the relevant regulatory authorities.

As of July 1, 2014, Cyprus Securities and Exchange Commission approved the public offer document. As of July 24, 2014, Board of Directors of Toxotis believes that the proposed consideration to the shareholders of the Company is fair and reasonable. As part of offer, in case, Velgraf acquire more than 90% of the share capital of Toxotis, it does not intend to exercise a squeeze out so as to acquire 100% of the share capital of Toxotis and delist it from CSE. Also, Velgraf also intends to make changes in the composition of the Board of Directors so as to reflect the new share structure. The period of acceptance of the offer for the shareholders of COV commences on July 8, 2014 and ends on August 7, 2014.

The Cyprus Investment and Securities Corporation Limited acted as a financial advisor to Velgraf Asset Management AD. PKF Savvides, Advisory Arm acted as fairness opinion provider for Toxotis Investments.

Velgraf Asset Management AD (BUL:1VX) completed the acquisition of an additional 10.33% stake in Toxotis Investments Public Ltd. (CSE:COV) for €0.07 million on August 7, 2014. Velgraf acquired an additional 2.14 million shares.