Chernigiv Khimvolokno Announces USD 3 mln Additional Share Issue

At their EGM on Nov. 2, shareholders of Chernigiv Khimvolokno (CHIM: BUY) decided to conduct an additional share issue of 42,860,000 new shares, which will be placed at a price of UAH 0.35 or above, which exceeds par of UAH 0.25. The implied charter fund increase is 6.2%, UAH 10.7 mln (USD 2.1 mln). Additional paid-in capital should increase by UAH 4.3 mln (USD 0.8 mln), at least. During the first stage, Nov. 28-Dec. 19, 2007, shares will be placed among existing shareholders, remaining shares, if any, will be sold to shareholders according to the list approved t the company’s EGM. The ex-rights date is Nov. 28, 2007. In separate news, the company’s commercial director said they are going to invest EUR 13 mln in modernization of textile-making equipment, planned to be completed by April 2008.