Published: 2016-07-27 08:00:00 CEST

Kotkamills Group Oyj: ISSUE OF NEW SHARES TO EXISTING SHAREHOLDERS AND NEW SHAREHOLDER LOANS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

27 July 2016, at 9 am (CET + 1)


The shareholders of Kotkamills Group Oyj have on 27.7.2016 unanimously resolved to offer by a directed issue a maximum of 1,406,277 new series A shares (the "New A Shares") of the company for subscription to the holders of series A shares pro rata to their holding of series A shares and a maximum of 153,128 new series B shares (together with the New A Shares, the "New Shares") of the company for subscription to the holders of series B shares pro rata to their holding of series B shares. The subscription period expires on 24 August 2016. The New Shares represent in aggregate approximately 15.59 per cent of the existing shares in the company. In addition, the board of directors was authorised to issue a maximum of 3,125 new series B shares as part of the company's share ownership program in deviation from the shareholders' pre-emptive subscription rights.

The subscription price for each New Share is EUR 1.00 and the aggregate subscription price for the New Shares is EUR 1,559,405. Pursuant to the terms of the share issue of the New A Shares, the holders of series A shares are in connection with their participation in the share issue required to grant shareholder loans to the company up to the aggregate amount of EUR 13,437,470. The terms of such shareholder loans would in material respects be equivalent to the terms of the existing shareholder loans.

The purpose of the share issue and the utilisation of the shareholder loans is to strengthen the company's cash position at the time of the start of the new board machine to fully utilise increased sales potential resulting from the start. As a result of the share issue and the utilisation of the new shareholder loans, Kotkamills Group Oyj would obtain financing in the aggregate amount of EUR 15,000,000 assuming subscription of the New Shares in full.

If all New Shares are not subscribed based on the primary subscription rights, the board of directors is authorised to resolve on the secondary subscription right, the subscription period and the payment of subscription price of any shares not subscribed.

Kotkamills Group Oyj

Board of Directors

For additional information, please contact:

CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com

Kotkamills Group in brief

Kotkamills is a responsible partner that delivers renewable products and high quality performance to its customers' processes via product innovations created from wood, a renewable raw material. Kotkamills' key brands include Absorbex® and Imprex®, both innovative laminating paper products for the laminate and plywood industries. Moreover, Kotkamills also offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. The start-up of the new board machine producing totally recyclable Consumer Board products is due in 2016. www.kotkamills.com

Disclaimer
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any jurisdiction.

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