Eleven Capital JSC - Sofia - Short Company profile

Eleven Capital plans to raise up to ˆ7.63 million through a capital increase, with the proceeds primarily earmarked for acquiring a stake in Convenience—the company behind the online grocery delivery supermarket eBag. The company will offer up to 918,851 new shares at a price of ˆ8.30 per share. This figure is slightly below the market price observed in recent days, which has ranged between ˆ8.40 and ˆ8.60. The capital increase will be executed via a rights issue; one right will be issued for every existing share, with 2.5 rights required to subscribe for one new share. The capital increase will be deemed successful if at least 450,000 shares are subscribed, securing a minimum of ˆ3.7 million. The bulk of the funds is intended for the acquisition of a stake in Convenience. To this end, Eleven Capital plans to allocate up to 80% of the raised capital toward this acquisition, with the stakes potentially being purchased from the limited partnership Eleven Investments and other existing shareholders of Convenience. Of the remaining funds, up to 17% will be directed toward follow-on investments in companies in which Eleven Capital already holds a stake. Up to 3% is allocated to cover the costs associated with the capital increase itself. In the event of a full subscription, this would translate to an investment of approximately ˆ6.10 million in Convenience, with up to ˆ1.30 million allocated for additional investments in other companies within the firm's portfolio. The planned transaction with "Convenience" will require approval at a general meeting of shareholders due to the involvement of Daniel Tomov. Tomov holds approximately 25% of "Eleven Partners," which is the largest shareholder in the publicly traded "Eleven Capital." The limited partnership "Eleven Investments" has no direct connection to the publicly traded company, although it is managed and owned by the same shareholders. Eleven Investments itself is already a shareholder in Convenience—the company behind eBag—holding approximately 5.7% of the entity. This stake is valued at around ˆ4.62 million (based on the transaction involving Convenience shares between HR Capital and MFG Invest). Eleven Capital is a publicly traded company that emerged as an extension of the Eleven fund, focusing primarily on investments in Bulgarian startups. The company debuted on the Bulgarian Stock Exchange (BSE) in March 2020, raising approximately ˆ1.1 million. Its latest report shows investments in 21 companies: three based in the US, two in the UK, and the remainder in Bulgaria. In each instance, Eleven Capital holds only a minority stake. The largest holdings in its portfolio are the CV-software company Enhancv R&D, followed by the software firm Sensika Technologies and the smart-home company MClimate. Over the past 12 months, Eleven Capital’s shares have risen by approximately 7.5%, though this performance lags behind the SOFIX index. Since 2022, the company has also been paying an annual dividend.