REDAVIA’s Virtual Shares are participation rights (Genussrecht) – a type of subordinated loan – from an investor to REDAVIA which provides the investor with certain rights to take part in the financial value created by the company. The Virtual Shares give the investor rights closely following the rights of the owners of ordinary shares in Redavia GmbH, and as such, are often referred to as “Virtual Shares”. Like ordinary shares, the “Virtual Shares” are in the equity of REDAVIA’s balance sheet and aim to generate a financial return for the investor from the growth of the company. Unlike regular shareholders, holders of Virtual Shares do not vote in shareholder meetings.