Convertible bond as electronic security: Heuking Kühn Lüer Wojtek advises artec technologies AG on innovative pilot project
A team led by Christopher Görtz from Heuking Kühn Lüer Wojtek’s Cologne office advises artec technologies AG on the issuance of a convertible bond in accordance with the new Electronic Securities Act as part of a pilot project. Granting statutory subscription rights to its shareholders, artec technologies AG intends to issue the innovative product to its shareholders presumably at the beginning of 2022.
The issuance of a convertible bond as an electronic security is made possible by the Electronic Securities Act (eWpG), which entered into force on June 10, 2021. For the first time, the new law creates the option to issue fully dematerialized securities for bearer bonds issued under German law. The previously required physical certificate is being replaced by an entry in a central register or a crypto securities register. With the passing of the new law the legislator has created an innovative option, according to which all promises to perform in bearer form may be represented by electronic securities. Shares, however, are not covered by the innovation. In addition to classic bonds, this path is open for equity-related products such as convertible bonds and bonds with warrants, profit participation certificates and warrants, investment certificates, and structured bonds.
Besides artec technologies AG and Heuking Kühn Lüer Wojtek the project team for this pilot includes Cashlink Technologies GmbH, one of the first companies to obtain a provisional license from the Federal Financial Supervisory Authority for the keeping of crypto securities registers, and securities trading bank Bankhaus Scheich with the sales platform tradias.
Diepholz-based artec technologies AG, which is listed on the open market, develops and produces innovative software and system solutions for the transmission, recording, and analysis of video, audio, and metadata in networks and on the Internet. artec offers its customers a full-service solution (project planning, commissioning, service & support) for the standard products and for special developments and cloud services. The company’s customers include national and international broadcasting companies, media firms, security agencies, and industrial companies.
Counsel to artec technologies AG
Heuking Kühn Lüer Wojtek:
Christopher Görtz (Lead)
Dr. Thorsten Kuthe,
Anna Richter, LL.M., (all Capital Markets), all Cologne