Nyzhnyodniprovsk Pipe AGM OKs 7.4-times Charter Fund Increase

At the company’s AGM yesterday, shareholders of Nyzhnyodniprovsk Pipe’s (NITR: HOLD) voted to increase the charter fund by 7.4 times to USD 19.8 mln. Current shareholders will have pro-rata subscription rights for shares price at par value, UAH 0.25. Subscription will be two-staged: (1) May 19 to June 2, and (2) June 3 to June 5. Proceeds will be used to replenish the company’s working capital and modernize the company’s facilities. Oleksandr Klymchuk: As we expected, shareholders voted to increase the number of NITR’s shares from 53.9 mln to 400.0 mln. Subscription at par means a discount to market of 99%. See our note of February 21 for more details on how to profit from such situations.