Subject:

Execution by indirect subsidiary H88 Hosting d.o.o. with its registered office in Croatia of an agreement to acquire shares in Avalon d.o.o. with its registered office in Croatia

Content:

On 11 June 2019, the Company’s indirect subsidiary H88 Hosting d.o.o. with its registered office in Croatia, as purchaser, entered into a share sale agreement (the “Agreement”) with natural persons who are Croatian citizens, as sellers, concerning shares in Avalon d.o.o. with its registered office in Croatia. The subject of the Agreement is the acquisition by H88 Hosting d.o.o. of 100% of the shares in Avalon d.o.o. for a price of EUR 1 850 000. Pursuant to the Agreement, ownership of the shares will transfer after payment of the full price.

Avalon d.o.o., whose shares were acquired under the Agreement, is a company providing broadly defined hosting services, domain registration and maintenance, SSL certificate supply and other additional services.

The acquired company generates more than EUR 800 thousand in revenue, representing approximately 17 % of the Croatian market. Avalon d.o.o. serves more than 9 thousand customers in the Croatian market and more than 10 thousand domains.

The acquisition of the company in the Croatian market is consistent with the adopted strategy of the H88 S.A. group, which is directly controlled by the Company, and represents another step in the group’s development process and the continuation of international expansion in the hosting and domain area, as well as building a leading position in the Central and Eastern European market.