NeoNet Completes Acquisition of Lexit

NeoNet, an international agency broker providing efficient electronic equity execution services for the institutional investor industry, today announced that it has completed the acquisition of Lexit Financial Group, Inc. in accordance with the previously announced Merger Agreement. All shareholders of Lexit have accepted NeoNet's offer.

The final purchase consideration consists of newly issued shares and a cash portion amounting to approx. USD 1.3 m. The Board of Directors of NeoNet AB has decided to issue 6 917 343 shares, all of which will be distributed to Lexit shareholders. The decision is based on the authorization of the extraordinary general meeting 15 July 2003. The newly issued shares will correspond to an ownership dilution of approx. 13.7%. With a nominal value per share of SEK 0.05, the newly issued shares will increase the share capital of the company by SEK 345 867.15.

NeoNet estimates that initially the yearly profit contribution (profit after goodwill amortization, financial net and including cost synergies) from the acquisition will amount to SEK 5 – 8 m. The combined operations will have over 180 institutional clients in 16 countries as well as considerable growth potential.

"The acquisition of Lexit is now closed and we will focus on creating an integrated company and on offering clients a very competitive service for cross-border equity execution," said Hans Karlsson, Chairman of the Board of Directors of NeoNet.

The acquisition has been approved by the NASD (USA) and FSA (UK) regarding change of ownership of Lexit Capital, LLC in the USA and Lexit Capital UK Limited in the UK, respectively.

In connection with the transaction, Hjalmarsson & Gunterberg Corporate Finance is acting as financial advisor to NeoNet. NeoNet’s legal advisors have been Mannheimer Swartling (Sweden), Nixon Peabody (US) and Simmons & Simmons (UK).

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