12:30 London, 14:30 Helsinki, 18 August 2022 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
DIRECTED SHARE ISSUE FROM AFARAK GROUP PLC
Stock Exchange Release
Afarak has resolved on directed share issue (“Share Issue”) to RCS Trading Corporation Ltd (“RCS”). The Share Issue takes place in accordance with the decisions of the Afarak Board of Directors, on the basis of the authorization given by the Annual General Meeting of Afarak on 1 June 2022, in deviation from the shareholders’ pre-emptive subscription right.
The Share Issue is connected to an Arrangement approved by the Board of Directors on 18th August 2022 related to the purchase by Afarak of certain loan receivables that RCS Trading Corporation Ltd has from Afarak’s group company Synergy Africa Limited. The Arrangement will take place in order to decrease the amount of Afarak Group’s external debt burden. This shall benefit also the Company as mother company of the Group. Therefore, the Share Issue fulfills the requirements as set out in the Finnish Companies Act.
As consideration for the Arrangement, Afarak shall issue in the Share Issue total of 13,132,477 treasury shares with a subscription price of approximately EUR 0.40 (EUR 0.3999031786225790) EUR per share, RCS shall pay the subscription price in full with contribution in kind.
After the execution of the Share Issue 7,041,514 treasury shares shall remain in the possession of Afarak.
Helsinki, August 18th , 2022
Afarak Group Plc
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, firstname.lastname@example.org
Financial reports and other investor information are available on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
London Stock Exchange