5 September 2023

As expected, basing on report of the company, Andriy Verevskiy purchased main part of newly issued in frames of tender offer Kernel shares.

According to announcement of Kernel, basing on results of tender offer a total of 216,000,000 million ordinary shares were placed at a price of USD 0.2777 per share.

Due to restrictions Kernel imposed on participation of minority shareholders in the tender offer (short period of time to provide an offer, only qualified investors were allowed to participate and others), 212,634,916 of new issue was purchased by main shareholder of the company – Mr. Andriy Verevskiy.

As a result, the share of Verevskiy in Kernel is to increase from about 80% up to about 94%, which will allow him to put a pressure on the remaining minority shareholders in terms of potential squeeze-out.

As a reminder, the company announced that new tender offer was necessary to increase the capital of the company by $60 million, which was the request of creditors (the company is in process of its short-term loans prolongation till the middle of Y2024). Taking into account almost $1.2 bln cash balance of the company against total debt of $1.4 bln, on our opinion $60 mln is too low a sum to have any sizable impact of the quality of balance sheet of the company,