Kernel EGM approves share issue

Kernel (WSE: KER PW) shareholders held an EGM on July 21, 2011 and granted the board of directors the right to issue up to 6,983,525 new shares in the company over five years. Yegor Samusenko: Of the additional share issue, 5.4 mln shares are related to Kernel’s SPO in April this year, when the majority shareholders lent their stake for the SPO and should buy them back out during this share issue. The other 1.5 mln shares, approximately 2% of the total outstanding, could be issued either for another SPO or for stock option granting. Following this EGM resolution, Kernel’s fully diluted number of shares comes to 81.7 mln, according to our calculations.