Registrations Of Khartsyzk Tube Share Issue Blocked By Court

The Kyiv Economic Court yesterday prohibited the Ukrainian Securities and Stock Market Commission from registering an additional share issue by Khartsyzk Tube (HRTR: SELL), which was approved by the company?s AGM earlier this year. The ruling was a result of a law suit brought by a minority shareholder in HRTR for violation of shareholder rights during the final stage of the share issue subscription. Concorde Capital: If HRTR?s share issue is cancelled, then the stock?s price may rise four- or five-fold. However, we believe it is more likely the minority shareholder will find a compromise with HRTR?s key stakeholder, System Capital Management, and that the share issue will ultimately be registered.