February 27th 2023, 16:19Current reports

Current report 1/2023

The Management Board of Atlantis SE informs that due to the request of a person claiming to be an attorney of the Polish Financial Supervision Authority, whose name has not been determined, sent to the Warsaw Stock Exchange, the Issuer’s quotes are still suspended since March 21, 2022.

At the same time, answering some of the Shareholders’ questions, the Issuer’s Management Board presents its position on this matter.

The above request to suspend trading does not meet the statutory conditions for suspension, in particular, it does not indicate the detailed reasons for the suspension of trading. Pursuant to art. 20 of the Financial Instruments Trading Act, the Polish Financial Supervision Authority _PFSA_ is obliged to publish information about the suspension of the Issuer’s trading which should also contain detailed reasons for the suspension. The Management Board tried to determine the reasons for this suspension but the Polish Financial Supervision Authority, being obliged to do so, did not provide the Management Board with such information. Therefore, the Management Board is unable to determine the legitimacy of the current suspension and is not even able to find out the reason for this suspension. In addition, in the course of time _11 months have elapsed since the suspension of the Issuer’s quotes_, another violation of the Act by the Polish Financial Supervision Authority took place, i.e. the suspension decision was not repealed. Possible proceedings to determine the reasons for this suspension and to inform the market in this respect should last a maximum of several days. Maintaining such a long suspension period is against Polish law.

An example is the efficiency of the authorities, including in particular the American Securities and Exchange Commission in the context of the recent bankruptcy of the FTX crypto exchange. The Management Board does not aim to assess these activities, and even less to compare them with the Issuer’s situation but pays attention to their speed and effectiveness. Investors are informed about the results of the investigation on an ongoing basis, the authorities publish all information and after 2 months, most of the facts regarding this bankruptcy are already known to the public. It is worth emphasizing that this matter is definitely more complicated than the issue of the last suspension of the Issuer’s quotes.

Unfortunately, the Polish Financial Supervision Authority operates in a way that is more incomprehensible and significantly different than other trade supervisors, even those from the European Union. The PFSA acts as if its actions were not aimed at solving possible problems and taking care of investors’ interests and thus increasing market transparency but only the work of this body is focused on internal work, without taking into account the sense of why it is performed. The best example of which are the recent suspensions of trading in the Issuer’s shares.

In the case of the Issuer, during the last suspension of quotes, when the suspension was cancelled after more than 4 months of suspension, the only thing it did was publish a 10-page presentation _the average working speed of the PFSA officials was 2,5 pages per month_, in which they generally described some manipulative practices – a quote from this presentation: “which were suspected of acting in concert, in the field of potential manipulation of the share prices of the above-mentioned companies in the period December 2020 – January 2022”, while not indicating how these potential activities would threaten the interests of Investors or how the security of the market was threatened. In general, the quality of this justification regarding the prior suspension of trading in the Issuer’s shares is of no consequence to Investors. At the same time, it is not known why institutions in other countries appointed to supervise the market are able to communicate with Investors in a quick and understandable way for recipients and the PFSA not only acts in a very sluggish manner but also in a way that does not bring anything to market participants. Reading this justification, it can be concluded that the prior suspension of trading in the Issuer’s shares occurred without any reason.

This is significantly different from the work of the US SEC which for 2 months was able to conduct an international investigation and publish hundreds of thousands of pages of documents.

However, in order not to give the impression of a negative attitude towards the Polish Financial Supervision Authority, the Management Board also knows the examples of the PFSA’s quick and efficient operation. For example, when approving the issue prospectus of Getback, the PFSA needed only 23 calendar days to analyze this company. So far, the Issuer does not know how it is that some entities in the Polish Financial Supervision Authority follow an accelerated path and some are treated very slowly. On its official website, the PFSA does not provide any information, including in particular the fees that would have to be paid to speed up the processing of a given case.

Source: https://www.knf.gov.pl/knf/pl/komponenty/img/Getback_Statystyka_postepowania_4_04_2017_16_06_2017_decyzja.pdf

Currently, the Management Board is planning to submit notifications of a crime committed against persons/persons who sent these notifications to the WSE, in connection with Article 231 of the Polish Penal Code. In addition, apart from the person who made the suspension decision, the Management Board plans to notify the group of persons who have failed to fulfill their obligations and despite the existence of grounds for immediate resume of the Issuer’s quotes, have not done so.

Irrespective of the reasons for the suspension, the Management Board is of the opinion that the suspension of the Issuer’s quotes is harmful to the market, even if there has been market abuse on the part of one or several Shareholders. Including, even if the main Shareholder was a person suspected of manipulation _we give this hypothetically, because nothing like this has ever taken place_. In such a case, the PFSA should indicate these abuses in a public communication so that Market Participants can diagnose them and trade based on the knowledge of these abuses.

At the same time, the Management Board declares that:

– currently no events have occurred that would necessitate the publication of any information, including in particular confidential information and currently no confidential information has been delayed,

Legal basis:
Other regulations

A person representing the Company:
Damian Patrowicz, Member of the Management Board