Ukrrichflot plans 2.2x charter fund increase

At their EGM yesterday, Ukrrichflot (FLOT: N/R) shareholders voted to increase the company’s charter fund by 118% to USD 12.4 mln. The company will issue 92,632,860 shares at par, USD 0.07 per share. Subscription will take place in two stages: (1) on a pro-rata basis from December 1 to December 12, 2008; and (2) from December 15, 2008 to January 31, 2009. The ex-rights date will be November 28, 2008. Inna Perepelytsya: This is the company’s second additional share issue since Grigorishyn took over control of the company. The first in December 2007 was targeted to raise his stake from 70-75%, via dilution of non-subscribing babushkas, to 95%, where it stands now. Management said that time around, proceeds will be used to increase working capital; this share issue could potentially increase Grigorishyn’s stake in the company to ~98%.