Kernel launches the share offering worth $60 mln among qualified investors

Kernel launches the share offering worth $60 mln among qualified investors

Kernel Holding S.A. (the “Company”) announces that on 21 August 2023 the Board of Directors of the Company adopted resolutions launching the share offering (the "Offering") exclusively directed ...

Agroholding Kernel, which currently has a market capitalization of about $282 million, has announced a decision to start a share placement among qualified investors who are shareholders of the company in order to raise up to $60 million to meet the requirements of ongoing negotiations with a pool of creditors and the needs of the company in the capital, taking into account the termination of the grain deal on July 18, 2023 and the losses caused by Russian missile strikes.

"The number of shares and the issue price will be determined during the formation of the order book, organized according to the rules of the Dutch auction, taking into account the restrictions arising from the company's charter capital," Kernel said on the Warsaw Stock Exchange on Tuesday.

It is specified that the company intends to use the proceeds from the placement mainly to reduce debt, as required by its creditors.

Currently, there are 84,032,230 shares in circulation, their closing rate on August 21 was PLN13.74 ($3.36). There are currently 84.031 million shares outstanding.

According to the prospectus, applications are accepted until the evening of August 28, while until August 31 its participants must make a deposit necessary for the purchase of shares, and the placement closes on September 4. In this case, if the submitted amount is less than $50 million, the board of directors may cancel the placement.

As reported, Kernel recently estimated the losses from Russian shelling in July-August at least $32 million, noting that it would take at least 12 months to restore the destroyed and damaged infrastructure.

The company also said that, taking into account the continuation of Russia’s war against Ukraine, in the spring of 2023 it initiated an extension of the deferral period for repayment of the principal amount of the debt for another year, until June 30, 2024, before creditors, but continues to pay interest.

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