Stockholm, 2010-10-08 18:00 CEST (GLOBE NEWSWIRE) --
RusForest's extraordinary general meeting on 8 October 2010 resolved in accordance with the following
Resolution on authorisation for the board to issue new shares
The shareholders' meeting resolved to authorise the board for the period up to the next annual shareholders' meeting to adopt decisions, whether on one or several occasions to issue new shares, provided however that any such issue must not result in the company's share capital exceeding the company's maximum allowed share capital as set out in articles of association as adopted from time to time. Such new issue decision may only include a provision that new shares shall be paid in kind.
The reason for the authorisation is to enable the acquisition of shares in Clonri Holdings Limited (or in other companies in the group in which Clonri Holdings Limited is a part) a Cypriot holding company owning shares in Amalage Limited, which is a Cypriot holding company owning forestry and sawmill entities as well as a management company, Nord Timber Group LLC, located in the Archangelsk region in the North West of Russia.
Resolution on rights issue
The shareholders' meeting's resolved that the company's share capital shall increase with not more than SEK 436,816,800 by an issue of not more than 43,681,680 new shares. The following terms shall further apply to the issue.
The shareholders shall have the right to subscribe for new shares with pre-emption rights, whereby two (2) subscription rights will be obtained for one (1) existing share. One (1) subscription right entitles to subscription of one (1) new share. Record date for participating in the rights issue shall be 15 October 2010.
The new shares shall entitle to dividends from and including the date of registration of the shares in the share register. The subscription for shares shall be made during the period 18 October 2010 - 1 November 2010. The subscription price shall be SEK 10 per share.
Subscription shall be made by payment, except as regards the shareholder Vostok Komi (Cyprus) Limited (a wholly owned subsidiary of Vostok Nafta Investment Ltd) who shall be entitled to subscribe and pay for shares by way of set-off of the claims which are based upon the interim financing which was received by RusForest from certain persons entitled to subscribe for shares on 1 July 2010 and 15 September 2010.
About RusForest AB (publ)
RusForest is the only listed Russian forestry and sawmilling company, with operations based in Eastern Siberia and long term leases covering over 850 thousand hectares of forest land. Russia has the world's largest forest reserves by a significant margin, and Eastern Siberia is world renowned for its Pine and Larch of exceptional quality.
Through a series of acquisitions and development projects RusForest increased sawnwood production by 37.9 percent in 2009, to 166,333 m3, in spite of weak market conditions. RusForest has a number of exciting development projects, in particular the turn-key sawmill in Magistralny which is expected to add a further 50 percent to RusForest's sawnwood volumes upon completion.
For further information please contact:
Martin Hermansson, CEO, phone: +7 903 015 64 65, +7 985 921 92 32
or
Erik Löfgren, External Relations, phone: +7 910 417 7670
RusForest AB's Certified Adviser on First North is E. Öhman J:or Fondkommission AB.
