Green Resources raised NOK 106.3m (USD 13.7m at NOK/USD 7.75) of new equity through two Right Issues implemented in April and May, issuing 21.4m new shares. The share issues were 4x over-subscribed (5x subscribed) with participation from ¾ of the 30 largest shareholders. A large number of medium and larger shareholders made significant over-subscriptions. The total number of outstanding shares after the share issues is 83,447,255, up from 62,031,292 before the Rights Issue.
Green Resources has raised USD 235m (or NOK 1,430m) of equity since the company was founded in 1995, including the USD 104m direct issue towards the GSFF owners in June 2014. In total, about USD 285m of equity has been invested in the assets currently managed by GR, including USD50m of additional equity invested in Companies acquired by GR. The average share price at the shares issues during the last eight years, when most of the capital has been raised, has been USD 3.59 per share, while the average share issue price since the company was established 20 years ago is USD2.82 per share. We believe GR has been the most cost efficient forest planting company in East Africa during this period.
USD 14m new equity from Rights Issues
Green Resources’ Extraordinary General Meeting on 14 April 2015 decided to implement a 1:4 rights issue towards existing shareholders, at par value (NOK 5 per share) to ensure there were no link between the issue price and market price/ value of the shares. The subscription closed 5 May 2015 with 15.5m new shares issued raising NOK 77.5m in new equity. The rights issue was 4x over-subscribed (total subscriptions of NOK 310m) and 22 of the 30 largest shareholders participated in the issue. The 26% of the shares were not directly subscribed to and were allocated among the over-subscribing shareholders based on the principle laid down by the EGM.
Green Resources had borrowed NOK 50m (USD 6.5m) of shareholder loans at the time of the rights issue to part fund the 5,000 ha new forest established during the 2014/15 planting season. Of the outstanding shareholder loans, NOK 35.7m was used as payment in kind for shares at the rights issue and the rest was repaid following the rights issue.
Following the large over-subscription to the rights issue, the Board of Directors resolved that it would utilise its Power of Attorney provided to it by the Annual General Meeting on 27 February 2015 to issue up to 6m additional shares. The allocation of shares at the extended share issue followed the same principles as the Rights Issue approved by the EGM. Thus, following subscription period closing 29 May, 5.9 million shares at par value were allocated, raising NOK 29.3m. The extended rights issue was 5x over-subscribed.
USD 235m – USD 285m equity capital in GR
Green Resources has raised NOK 1,430m of equity since the company was founded in 1995, or USD 235m based on the exchange at the time of the equity issues. In total, about USD 285m of equity has been invested in the assets currently managed by GR, including USD 50m of equity invested in Companies acquired by GR, in addition to the price paid for these companies by GR.
Average historic share price
The average price of GR’s shares issues during the last eight years, when GR started raising larger amounts of equity and more than ¾ of the shares have been issued, is USD 3.59 per share (or NOK 21.60 based on the registered issues in NOK), down from USD 5.20 prior to the Rights Issue. During the last eight years, about one third of the new shares were issued in exchange for GSFF at NOK 35 per share (of which 84% was payment for assets valued at 62% of invested capital and the rest being cash), one third were issued during the seven years prior to this and one third were issued at the recent Rights Issue. The average price for the Green Resources shares issued since the company was established 20 years ago is USD 2.82 (or NOK 17.14 based on the registered issues in NOK).
For more information please contact:
Mads Asprem, CEO: Mads.Asprem@GreenResources.no
Robert Thompson, CFO: Robert.Thompson@GreenResources.no
PDF version: GRAS Press release - Rights Issue.pdf