Market announcement

Title

Stock market quotes of FON SE - bonus issue of shares

Message

The Management Board of FON SE with its registered office in Tallinn (hereinafter referred to as the "Issuer", "Company"), in response to questions asked by the Issuer's shareholders for information on the progress of work on the allocation of shares and registration of the bonus issue, informs as follows:

The Management Board of FON SE in implementation of resolution No. 3 of the Ordinary General Meeting of the Issuer of November 23, 2023 on increasing the Company's share capital from own funds as part of a bonus issue of shares for existing shareholders holding shares as of 8/12/2023 at 17:00 submitted an application to the Registration Department of Tartu County Court on 8/12/2023 to register the issue of bonus shares and related changes to the Company's statute in the Estonian Register of Entrepreneurs. The Issuer will inform the shareholders in an appropriate announcement about the increase in the share capital by the issue of bonus shares by the Registry Court.

After registering the bonus shares in the Estonian register, the Issuer will submit an appropriate application to the National Depository for Securities(KDPW) and trading in the bonus shares will be possible at the Issuer's request when the shares from bonus issue will be admitted to trading on the main market of the Warsaw Stock Exchange via proper resolution of the Management Board of the Warsaw Stock Exchange.

The Issuer's Management Board will successively implement individual stages of work, which will be reported in appropriate reports.

In response to further inquiries from shareholders, the Company's Management Board informs that it is monitoring the Company's quotations and sees that currently trading in the shares of FON SE is impossible due to large PKC purchase orders entering the market (i.e. at any price).

In the Issuer's opinion, placing PKC orders, especially in illiquid companies listed on the Warsaw Stock Exchange, has negative effects that may affect the clarity and effectiveness of this market.

The main concerns include:

Confusion in Orders:

Orders at any price (PKC) on illiquid companies introduce unnecessary confusion, which makes it difficult for investors to understand the true turnover of a given financial instrument and determine the real value of shares.

Large Spread in Orders:

The existence of PKC may lead to wider spreads between bid and ask prices, which may discourage investors from making transactions and negatively affect market liquidity.

Potential Risk of Manipulation:

PKCs may pose a risk of price manipulation in illiquid markets which in turn affects market fairness and transparency.

This problem has been noticed by the Polish Financial Supervision Authority and the Warsaw Stock Exchange many times but so far PKC orders on illiquid companies have not been eliminated.

In view of the above, the Management Board appeals to Shareholders and those placing purchase orders to ensure the demand and supply of shares at such a level as to enable trading in shares on the Warsaw Stock Exchange.