February 24, 2024

Kernel Group provided an update on legal proceedings launched by minority shareholders against the company's Board of Directors.

In its February 23 current report, Kernel notes that on February 20, 2024, it received two legal summonses from a group of eight shareholders who together hold 1,210,430 shares, amounting to 0.4% of the Company's total issued shares (we assume that the share was determined taking into account the recent new issue of shares, which diluted the share of minority shareholders from 19.6% to about 5%, so without taking into account the new issue (which is challenged) - about 1.6% of the total amount - note of ShareUAPotential).

In the first lawsuit, the minorities demand a temporary suspension of the decisions of the Board of Directors of the company regarding the initiation of a share offering and the increase in share capital following the share offering.

The preliminary hearing on this lawsuit is scheduled for March 18, 2023.

The second lawsuit seeks to cancel the same decisions of the Board of Directors of Kernel or to compensate for the losses incurred as a result of the actions of the Board of Directors and Namsen Limited of Andrii Verevskyi in relation to the minority shareholders. A procedural hearing has not yet been scheduled for this lawsuit.

Additionally, Kernel reports that in January 2024, as part of a case initiated in October 2023 by the same minority shareholders of the company, a lawsuit was filed in the District Court in Luxembourg. As part of this lawsuit, the minority shareholders demand the cancellation of some decisions of the Board of Directors of the company, including the decision to delist the company from the Warsaw Stock Exchange.

More about the new shares issuance which led to significant dilution of minority shareholders stake in Kernel you can find here. To find more information on the Kernel history of listing at WSE and how it helped the company to grow - please, follow the link.