Amendments to the terms of the notes issue

AS Moda Kapitals (the Issuer) initiates procedure to amend the notes issue terms using the rights prescribed in 6.6 section of the terms of the notes issue.

Given current state of the economy of Latvia which has been materially negatively impacted by coronavirus Covid-19, the issuer offers note holders to amend the following terms of the issue:

1. Repayment of face value is changed to 15 November 2025;
2. Coupon (interest) rate will not depend on share of equity in balance sheet and is changed to the following rate:
   1. 8% for a period from 16.11.2020 to 15.11.2021,
   2. 9% for a period from 16.11.2021 to 15.11.2022,
   3. 10% for a period from 16.11.2022 to 15.11.2023,
   4. 13% for a period from 16.11.2023 to 15.11.2025.

In addition the issuer offers to amend 6.5 section “Early redemption” by adding a right of note holders to demand early redemption of the notes in case if according to the issuer’s audited annual starting from the year 2020 the balance sheet reports equity less 100000 EUR and if during 30 (thirty) day period after the audited annual report shareholders do not increase it to at least 150000 EUR.

According to the terms of the notes issue note holders have to submit to the issuer signed voting form until 6 November 2020 by submitting it in person or by sending a registered letter to the Issuer’s office address: Ganību dambis 40A-34, Rīga, LV 1005.

The record date of the list of note holders who have a right to vote is fixed on 30 October 2020.

Amendments come into force if note holders who own at least 2/3 (two thirds) of the outstanding notes (not counting the notes owned by the issuer and/or its related parties (subsidiaries, shareholders, members of the supervisory council and the management board or employees) have voted in support of the offered amendments. The notes owned by the issuer and/or its related parties (subsidiaries, shareholders, members of the supervisory council and the management board or employees) may not be used to participate in the voting procedure.

The issuer will count received votes and announce voting results to note holders within one Business day after the end of voting form submission deadline by making a relevant announcement.

Attached is a voting form and the amendments to the terms of the issue.

         Guntars Zvīnis
         AS Moda kapitāls Executive director
         Email: guntars@draudzigsaizdevums.lv
         Phone: +37167344234