Published: 2016-08-26 17:30:00 CEST

Kotkamills Group Oyj: SUBSCRIPTION OF NEW SHARES BY EXISTING SHAREHOLDERS AND UTILISATION OF NEW SHAREHOLDER LOANS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

26 August 2016, at 6:30 pm (CET +1)

The shareholders of Kotkamills Group Oyj unanimously resolved on 27 July 2016 on a directed issue of 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 (the "New B Shares" and together with the New A Shares, the "New Share(s)") of the company for subscription to the holders of series B shares pro rata to their holding of series B shares.

The subscription period expired on 24 August 2016.The holders of series A shares subscribed the maximum amount of 1,406,277 New A Shares offered for subscription on the directed issue of the company and the holders of series B shares subscribed 131,252 of the total 153,128 New B Shares offered for subscription on the directed issue of the company. The subscribed New Shares represent in aggregate approximately 13.33 per cent of the total number of the shares in the company.

The subscription price for each New Share is EUR 1.00 and the aggregate subscription price for the New Shares is EUR 1,537,529. Pursuant to the terms of the share issue of the New A Shares, the holders of series A shares granted in connection with their participation in the share issue shareholder loans to the company in the aggregate amount of EUR 13,437,470. The terms of the shareholder loans are in material respects 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 to fully utilise the increased sales potential resulting from the start of the new board machine. As a result of the share issue and the utilisation of the new shareholder loans, Kotkamills Group Oyj will obtain financing in the aggregate amount of EUR 14,974,999.

After the share issue has been recorded in the Finnish Trade Register, the total number of shares issued by the company will be 11,537,529, of which 10,406,277 will constitute series A shares representing approximately 90.2 per cent of the total number of the shares in the company and 1,131,252 will constitute series B shares representing approximately 9.8 per cent of the total number of the shares in the company. The entire subscription price of EUR 1,537,529 will be entered in the company's reserve for invested unrestricted equity.

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 performance to its customers' processes via product innovations created from wood, a renewable raw material. The key brands of the company include Absorbex® and Imprex®, both innovative laminating paper products for the laminate, plywood and construction industries. Moreover, Kotkamills offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. In summer 2016, Kotkamills started up a new board machine producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including the capability to add barriers on-machine. All Consumer Boards material solutions are fully recyclable and repulpable.

Kotkamills has two production sites in Finland, located in Kotka and Imatra, and a subsidiary L.P. Pacific Films for Imprex® production in Malaysia. The majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.
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.