THE BOARD OF DIRECTORS OF INCAP CORPORATION DECIDED ON OFFERING OF CONVERTIBLE PROMISSORY NOTES

INCAP CORPORATION                       STOCK EXCHANGE RELEASE       

                                                          21 May 2007 at 3 p.m.

 

  

The Board of Directors of Incap Corporation has decided to offer convertible promissory notes for subscription by a limited group of professional investors (Private Placement). The convertible promissory notes will be used for financing of acquisitions in accordance with Incap's strategy.

 

The maximum principal of the convertible promissory notes is EUR 6,750,000. The issue rate of the convertible promissory notes is 100%, and the annual fixed interest to be paid on the principal of the convertible promissory notes is 7.0%. The maturity is five years. The subscription period for the convertible promissory notes is 21 and 22 May 2007.

 

A right to subscribe for a maximum of 2,500,000 new shares in the company is attached to the convertible promissory notes. Each note unit in the amount of EUR 5,400 entitles the note unit holder to convert the note unit into 2,000 new shares. The conversion rate is EUR 2.70. The conversion period for the note units will commence on the date of the trade register entry concerning the issue of stock options attached to the convertible promissory notes and will end on 30 April 2012. Stock options cannot be detached from the note units. The conversion rate will be recorded in the invested non-restricted equity fund.

 

 

INCAP CORPORATION

The Board of Directors

 

Juhani Hanninen

President and CEO

 

 

For additional information, contact:

Juhani Hanninen, President and CEO, tel. +358 50 556 7199

Anne Sointu, Chief Financial Officer, tel. +358 40 347 2059

Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40 504 8296

 

DISTRIBUTION

Helsinki Stock Exchange

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