Stakhaniv Wagon EGM Approves Results of Share Issue

At their EGM on February 18, Stakhaniv Wagon (SVGZ: BUY) shareholders approved changes to the company’s statute to account for the updated number of shares (from 12.6 mln to 37.7 mln) following the company’s additional share issue in November-December 2007. All shares from the additional share issue were sold, according to company representatives. The issue boosted Stakhaniv Wagon’s share capital to USD 7.85 mln. Funds raised will be used for working capital and to finance CapEx. Two supervisory board representatives were replaced, a technical move related to changes in the company’s official shareholder structure. Inna Perepelytsya: The process for the additional share issue is proceeding as expected; we believe the share emission will be officially registered by the end of March. We reiterate BUY on the stock.