Stock exchange release 30 November 2012 at 3.40 p.m.
INCAP CONTINUES NEGOTIATIONS ON ARRANGEMENT CONCERNING CONVERTIBLE BOND
Based on the financing arrangement in spring Incap Corporation is committed to redeem the remaining amount (a total of EUR 2.3 million) of the convertible bond issued in 2007 by the end of 2012 in two instalments: EUR 1.1 million by 30 November and EUR 1.2 million by 31 December. The company planned at first to collect the funds for the redemption through a share issue in autumn 2012. Now, the company has decided to postpone the share issue to the year 2013 and investigated other tools to finance the redemption. The company is currently consulting with major shareholders, financiers and holders of the convertible bond with the target to find a proper solution for financing arrangement.
Incap's management is confident about the successful arrangement in financing because major shareholders of the company have already expressed their support to the financing of the company. The financing position of the company will improve after the redemption of the convertible bond, because the second instalment of the additional loan granted by a Finnish bank (EUR 1.5 million) can be withdrawn based on the loan conditions after the redemption of the convertible bond and after the bank has accepted the achieved level of net IBD/EBITDA.
The profitability of the company is estimated to improve further and according to the guidance given on 31 October 2012 the operating profit (EBIT) for July-December 2012 is estimated to be positive.
President and CEO
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Kirsti Parvi, CFO, tel. +91 990 204 2813
Hannele Pöllä, Director, Communications and IR, tel. +358 40 504 8296
NASDAQ OMX Helsinki Ltd
INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and manufacture to maintenance services. Incap's customers include leading equipment suppliers in energy-efficiency and well-being technologies, for which the company produces competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China. The Group's revenue in 2011 amounted to EUR 68.9 million, and the company currently employs approximately 670 people. Incap's share is listed on the NASDAQ OMX Helsinki. Additional information: www.incap.fi.
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Source: Incap Oyj via Thomson Reuters ONE