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Agroliga Group PLC debuted on NewConnect
Friday, 11 February 2011

Press-release

Agroliga Group PLC debuted on NewConnect

At the opening share price grew by 43 percent to 116 PLN

 

Warsaw, February 11th 2011, Cyprus based Agroliga Group PLC – holding company of Ukraine based producer of sunflower oil conducting also grain cultivation and cattle-breeding debuted today on the NewConnect market. At the opening share price grew to …PLN, which is about … percent higher than price at the offering (81 PLN). Agroliga raised EUR 1 million from the private placement offering that preceeded the debut. These funds will be utilized for investments in modernization of the company’s production facilities. The Issuer’s Authorized Advisor is WDM Autoryzowany Doradca sp. z o.o.

„Today’s debut on NewConnect market is a part of our strategy of increasing the scale and transparency of international business. This arise from both, the WSE’s prestige and the capital that we gained. We will use it to finance intensive development, which will allow us to move to WSE’s main market. I believe that we show an interesting way for growth to other companies in the region, including Ukraine. Today's debut also prove that the attractive valuation of share price – in Agroliga’s case P/E ratio was about 5, can be very beneficial for major shareholders due to great interest in the offering and the share price’s growth rate potential after listing, which is confirmed by today’s quotations. We would like to say ‘thank you’ to the investors who bought our shares in the private placement offering. Thanks to their trust Agroliga raised Eur 1  million, that will be spent on modernization of machinery and increase the breeding complex. We intend to work on our financial results, so that at the end of 2012 the company will join the NCLead index. Next step will be passing to the WSE’s main floor.” – says Oleksander N. Berdnik, President of the Board of Directors of Agroliga Group PLC.

 

FINANCIAL RESULTS

As of the end of September 2010 Agroliga Capital Group generated consolidated revenues of EUR 4,2m while the net profit reached EUR 1,055m. This represents growth of 74 and 92 percent respectively compared to the corresponding period of 2009. According to the forecasts the Company expects that its consolidated revenues for 2010 will reach EUR 4,47m, while the consolidated net profit will amount to EUR 1,32m.

 

 

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 installation for sunflower production 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 refinement, deodorization and confection technologies
  • Organization of production of milk preserves addressed to end client
  • Introduction of social programs

* * *

 

Agroliga Group is Ukraine based company conducting food and agricultural business. The Group produces sunflower oil, grain and breeds milk 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.

The group plans to debut on the Warsaw Stock Exchange’s governed NewConnect market on early February 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. Emilii Plater 53

00-113 Warszawa

tel. (+48 22) 311 24 11/ 12

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Financial Advisor:

Progress Holding Sp z o o

Ul. Szańcowa 44

01-458 Warszawa

tel. (+48 22) 836 58 48

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