Kernel boosts share capital by 1.3%

Ukrainian sunflower oil producer Kernel (KER PW) announced on Dec. 5 it has bosted its share capital by USD 26,876.55 (or 1.28%) with the issue of 1,017,820 new ordinary shares. The newly issued shares have already been reserved by the holders of stock options issued in connection with the company’s management incentive plan. As a result of the increase, Kernel’s share capital is now at USD 2,130,996.66, divided into 80,701,230 shares.

Igor Zholonkivskyi: The company’s FY2016 financial report indicated its average number of diluted shares stood at 81.4 mln and its diluted earnings per share were USD 2.77, compared to USD 2.83 for basic earnings per share. Following the share capital increase, initial shareholders’ equity was diluted by approximately 1.3%. Since the share capital increase was anticipated at some point in time and since its size is negligible, we do not expect this dilution to have any noticeable impact on Kernel stock.