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Friday, 14 January 2011

Agroliga Group PLC’s succeded on EUR 1m private placement

NewConnect debut planned for 1Q 2011

 

Warsaw, December 7th, 2010, Cyprus based AgroligaGroup PLC – holding company of Ukraine based producer of sunflower oil conducting also grain cultivation and cattle-breeding – finished with success its private placement offering worth EUR 1 million. Funds from offering will be utilized for purchase of new production machines and modernization of breeding complex. Agroliga plans its NewConnect’s debut for 1Q 2011. The Issuer’s Authorized Advisor is WDM Autoryzowany Doradca sp. z o.o.

Investors signed for all 51.260 offered new shares, that are equal to 16,67% in Agroliga Group PLC’s share capital.

 

- „P/E ratio for this private placement was below 5, so great number of interested investors is not a suprise. There were many more interested investors than shares offered, but we did not decided to increase volume of offered shares, because we do not want further dillution of shareholding structure. EUR 1 million realizes our plan, which was to finance one third of necessary investments. We will use this funds to buy new production line and to increase number of milk-cows. Total value of both investments is EUR 3,6 million, from which EUR 2,6 million we will cover from our own funds. We think that our share capital, historical financial results and realistic financial forecasts convinced investors, that its worth to trust us. Now we are waiting for NewConnect debut, that we expect to happen in the beginning of 2011.” – says Oleksander N. Berdnik, President of the Board of Directors and co-founder of Agroliga Group PLC.

 

FINANCIAL RESULTS

 

Agroliga Group PLC’s subsidiaries from very beginning of its operations generate high level of revenues and growing net profit. At the end of 2009 Agroliga’s subsidiaries had EUR 2,4 million of revenues and almost EUR 530k of net profit. For 2010 the Group forecasts consolidated revenues of EUR 4,478m and consolidated net profit of EUR 1,326k.

 

- „We plan graduał change in our revenues structure, to increase revenue from production of sunflower oil, milk and meat, as we see great potential of growth in these segments. Regarding grain production, no later than by 2014 we will limit its share in our total revenues to less than 15%.” – says Oleksander N. Berdnik, President of the Board of Directors of Agroliga Group PLC.

INVESTMENT PLAN

YEAR

PLANNED INVESTMENT

By 2012
  • Increase of productivity from 1 ha by 20-50%
  • Increase of herd by 200 pedigree, high-milk cows
  • Launch of second instalation for sunflower prodiction able to produce 10 thousand tonnes a year, which will allow to increase total production by 17 thousand tonnes/year
  • Reach of 5% share in Charkow’s sunflower oil production market

By 2014
  • Investments to increase warehouse capacity, elevators and sunflower oil tanks
  • Increase of cows herd to 1,2 thousand
  • Introduction of employees’ long-term motivational program, individual paths of development, rotation of human resources and share in Agroliga Group’s profits
  • Reach of 5% share in Charkow’s milk production market

After 2015
  • Leasing of additional seeding grounds
  • Introduction of sunflower oil rafination, deodorization and confection technologies
  • Organization of production of milk preserves adressed to end client
  • Introduction of social programs

* * *

 

AgroligaGroup is Ukraine based company conducting food and agricultural business. The Group produces sunflower oil, grain and breedsmilk cows. The Group consists of five companies:

-         Agroliga Group PLC – the holding company based in Cyprus and who was the Issuer in private placement offering.

-         Agroliga operating in Ukraine. It conducts plant production;

-         Mechnikovo operating in Ukraine. It specializes in milk cows breeding and plant production;

-         Agrokom Novaj Vodolaga operating in Ukraine. It conducts sunflower oil production;

-         PLC Liga A operating in Ukraine. It focuses on sales and trading services for other companies in the Group;

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Agroliga plans to enter Warsaw Stock Exchange’s NewConnect market by early 2011. Before listing the Company will conduct private placement asking investors for EUR 1m. Funds will be used for modernization of machine park, increase of production forces and breeding complex.More: www.agroliga.com.ua

 

The group plans to debut on the Warsaw Stock Exchange’s governed NewConnect market by the end of 2010/early 2011. Prior to that the Company conducted private placement from which it received EUR 1 million. These funds will be used for modernization of machine park, increase of production forces and breeding complex. More information: www.agroliga.com.ua

 

More information:

 

 

Authorized Advisor:

WDM Autoryzowany Doradca sp. z o.o.

ul. Kiełbaśnicza 28

50-109 Wrocław, Poland

tel. (+48 71) 79 11 555

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IR Advisor:

Public Image Advisors S.A.

ul. Smolna 13

00-375 Warszawa

tel. (+48 22) 826 64 75

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Financial Advisor:

Progress Holding Sp z o o

Ul. Szańcowa 44

01-458 Warszawa

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