VALMIERAS STIKLA ŠĶIEDRA, AS takes further steps to raise additional share capital through a follow-on public offering and plans to move its shares to the Nasdaq Baltic Main List

28. February, 2019

VALMIERAS STIKLA ŠĶIEDRA, AS (the Company) informs that it has decided to take additional steps towards raising additional capital resources through a potential follow-on public offering (FPO) of the Company´s shares, which will be subject to corporate and regulatory approvals. The purposes are to strengthen its overall capital base as well as financing capital expenditure-related items at its operational locations.

In the Annual General Meeting held on May 25, 2018, it was decided to entitle the Management Board of the Company, with the Supervisory Board´s approval, to increase the Company´s share capital by issuing a maximum of 7,170,961 new shares. The full details are available here.

The price per one new issue share has not been decided yet. This will be determined after taking into account various factors including, but not limited to, recent developments in the Company´s operations and the industry it operates in, conditions in global financial markets as well as investors´ feedback. The expected use of proceeds is to strengthen the Company´s capital base as well as activities related to ongoing operations at its Latvian (Valmiera) and USA plants.

The Company has mandated AS LHV Pank (the Advisor), registered in Estonia as its financial advisor for this purpose. With the help of the Advisor, the Company will explore the possibility to undertake the transaction already during the first half of 2019.

Additional decisions emanating from a General Meeting of Shareholders will still be sought to clarify further aspects of the planned transaction. All required regulatory approvals will be sought as well.

The Company also plans to move its shares to the Nasdaq Baltic Main List in order to increase their liquidity and appeal to the regional investment community, including pension funds. As per the Listing Rules this requires a material increase in the free float level.