[ESMA 31-62-1258 Prospectuses Q&A nr 15.2]

Yes. For example:

An issuer has 100 shares admitted to trading in January 2020.

Later in January 2020, the issuer applies for the admission of 18 additional shares to trading on the same regulated market. In this case, the exemption applies as the new admission only represents 18% of the issuer’s securities of the same class already admitted to trading on the same regulated market over a 12-month period.

In June 2020, the company splits its capital exchanging the existing 118 shares for 236 new shares (1 x 2).

In December 2020, the issuer applies for the admission of 12 new shares. These new shares plus the previous exempted 18 shares (=30) represent only 13% of the total number of shares (30/236). However, taking into consideration the split that took place in June, the previous 18 shares should be adjusted to 36 (18x2). Consequently, 48 (36 + 12) shares divided by the number of shares already admitted (236) amounts to 20% and therefore the issuer should produce a prospectus in December for the admission of the 12 new shares to trading on a regulated market.

Although the example set out above relates to shares, ESMA notes that the application of Article 1(5)(a) is the same for non-equity securities.