Kernel launches a $60 million share placement for qualified investors
The company intends to use the accrued funds for debt reduction
Agroholding Kernel has commenced the placement of shares among qualified investors, who also hold stakes in the company. The goal is to secure up to $60 million, which will address the criteria set during ongoing discussions with a consortium of creditors and fulfil the company's capital requirements.
The initiative was detailed in an official statement on the Warsaw Stock Exchange.
"The quantity of shares and the price of issuance will be ascertained during the book-building exercise, adhering to the Dutch auction principles. This will account for limitations stemming from the company's charter capital," the announcement elaborated.
It further clarified that the primary purpose of the funds raised is to decrease its liabilities, as requested by its lenders.
As of now, 84 million 32,230 shares are in the market, closing on 21 August at PLN13.74 ($3.36). Currently, there are 84.031 million shares in circulation.
Per the prospectus, applications are welcomed until 28 August evening. By 31 August, participants are expected to deposit the necessary amount for share acquisition, with the placement concluding on 4 September. However, if the collected sum falls below $50 million, the board reserves the right to revoke the placement.
Background. It is noteworthy that Kernel recently assessed its damages from russian bombardments in July-August to be at least $32 million, highlighting that certain damaged infrastructure's rehabilitation could span a minimum of 12 months.
Furthermore, in light of the ongoing conflict between the russian federation and Ukraine, the company, in spring 2023, proposed to its creditors an extension for the principal debt repayment by an additional year, to 30 June 2024, while maintaining interest payments.
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