Landkom approves additional share placement

Landkom International (LKI LN) announced that its shareholders at an EGM yesterday approved all resolutions relating to the placement of 195 mln new ordinary shares at 5 pence per share. The issue price represents a 30% discount to the closing mid-market price on October 21. Landkom previously said it planned to raise GBP 9.75 mln (USD 16 mln) from share placement. As a result of the share issue, the total number of ordinary shares increased by 81.2% to 435,008,935. Landkom plans to use the proceeds for working capital needs, including its crop and planting programs in 2010. Admission of the new shares to trading is expected to commence today, November 25. Andriy Gostik: The decision came as fully expected and its effect is already priced in, in our view.