Motor Sich Reports on Use of Private Placement Proceeds

Motor Sich (MSICH: BUY) announced yesterday that it had spent the USD 32 mln from the private placement of 11% of its treasury stock earlier this year on new equipment for serial production of engines (AI-222-25 and D-436-148). The company said that the new equipment would improve efficiency and productivity. Inna Perepelytsya: The detailed reporting of how the company used proceeds from its private placements bolsters accountability before investors. Additionally yesterday, Motor Sich said that it is creating a station to conduct engine maintenance in the United Arab Emirates (UAE), which will be the first such base in the region. We believe this removes one of the stumbling blocks for sales in the region by offering more convenient access to technical assistance.