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Green Resources Completion of Rights Issue February 2012

4 April 2012

COMPLETION OF RIGHTS ISSUE 

Dear Shareholder,

Green Resources has successfully raised NOK 97 million (USD 17 million) of new equity from its existing shareholders, through the issue of 6 million new shares.  The total number of outstanding shares after the share issues is 41.5 million.

The Extraordinary General Meeting (EGM) on 22 December 2011, decided to increase Green Resources’ share capital by raising up to NOK 56 million (USD 10.1 million) of new equity through a 10:1 rights issue at NOK 16 per share, creating up to 3.5 million additional shares.  The subscription period ended on 28 February 2012.

The rights issue was fully subscribed to and a total of 3,538,430 new shares will be issued to the respective subscribers based on the allocation approved by the Board of Directors on 26 March.   The rights issue was over-subscribed, but three shareholders voluntarily reduced they subscription such that the number of subscribed shares matched the available number of shares.  A total of NOK 22.4 mn of shareholder loans were converted to equity as part of the rights issue.

Furthermore, the EGM also approved the conversion of up to NOK 41.2 million (USD 6.9 million) of shareholder loans into a maximum of 2,575,389 shares.  These loans, mostly raised during 2Q 2011, included a conversion rights, unlike earlier and later loans.  All the lenders converted their loans to equity at the EGM 22 December 2011, leading to an additional 2.5 million of new shares being issued. 

Separately, two development banks have approved NOK 126 million (USD 22.5 million) of subordinated debt to Green Resources. This loan will ensure financing of the Company’s new business plan, securing financing until the company becomes cash flow positive. The subordinated loan shall be repaid by 2018.  

If you have any queries, please contact us on +47 67 12 00 31, or via email to jannicke.koch-hagen@greenresources.no.

 

Yours sincerely,                                                                    

 Mads Asprem                                        Jannicke Koch-Hagen

 Managing Director                                Finance Director