Bittnet Systems SA (BVB:BNET) agreed to acquire a 23% stake in The E-Learning Company SRL for RON 1.8 million on October 19, 2020. Bittnet Systems SA signed an investment contract to acquire a 23% stake in The E-Learning Company SRL on February 23, 2021. Under the contract, Bittnet Systems will acquire 20,700 shares (23% of the share capital) of The E-Learning Company SRL. The consideration will be paid both in cash and in form of BNET shares. The final value of the transaction will be adjusted based on the financial results for 2021 of The E-Learning Company SRL, considering a multiplier of the net profit of 6, 11 or 15, depending on the ratio between the net profit of 2021 and the net profit of 2020. As per contract signed, total consideration of RON 1.75 million will be paid in two tranches. A first tranche in amount of RON 0.85 million will be partially paid in cash RON 0.45 million and the rest will be compensated by issuing BNET shares and allocating them to The E-Learning Company SRL founders. The second tranche will be calculated at the beginning of 2022, subtracting from the transaction price the value of the first tranche. The exact price of the transaction and the allocation between cash and compensation through BNET shares will be made depending on the fulfillment of certain profitability indicators that ELC aims to obtain for the financial year 2021. The number of shares for the compensation of each of the two tranches will be determined in accordance with the provisions of art. 210(2) Law 31/1990 and art. 87-88 of Law 24/2017 on issuers of financial instruments and market operations and art. 174 of the FSA Regulation no. 5/2018. Following the entry of Bittnet Systems into the shareholding, the parties also signed a loan agreement by which the Issuer made available to The E-Learning Company the amount of RON 0.24 million for financing the working capital for a maximum period of 3 years and an interest of 10% per year. As a result of the investment contract, Bittnet has allocated a position in the Board of Directors of E-Learning Company, a position that will be occupied by Ivylon Management SRL through Logofatu Cristian. Transaction is subject to approval of shareholders of Bittnet Systems. Extraordinary General Meeting of Shareholders of Bittnet Systems is to be held on November 26, 2020. As of November 26, 2020, transaction has been approved by shareholders of Bittnet Systems.