RusForest AB
RusForest Secures Bridge Financing
RusForest AB 15.11.2012 17:35 Dissemination of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Stockholm, 2012-11-15 17:35 CET (GLOBE NEWSWIRE) -- RusForest AB (publ) ('RusForest' or the 'Company') (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, has secured a $5 million term loan from the Company's largest shareholder, Vostok Komi (Cyprus) Limited, a wholly-owned subsidiary of Vostok Nafta Investment Ltd ('Vostok Nafta'). As previously announced, RusForest faces several operational and financing challenges. The Company has appointed Pareto Öhman AB as financial advisor to explore strategic and financial alternatives. At the same time, the Company is strengthening management to improve operational results. In order to ensure that the Company has sufficient working capital to continue these efforts, RusForest has accepted an offer from Vostok Nafta for a $5 million term loan. The bridge loan carries 16 percent annual interest and matures on April 30, 2013. The loan is secured by a pledge of the Company's rights under certain forest lease agreements and is repayable at the earliest of asset sales, an equity issue or maturity. The proceeds from the loan will be used for working capital purposes while RusForest evaluates alternatives to address its long-term capital requirements. About RusForest AB RusForest is a Swedish forestry company operating in eastern Siberia and the Arkhangelsk region of Russia. The Company controls approximately 3 million hectares of timber through long-term leases with an annual allowable cut ('AAC') of approximately 3.6 million cubic meters. RusForest owns five sawmills in close proximity to its forest leases and is self-sufficient in raw material to produce more than 400,000 cubic meters per year of sawnwood products. The Company is listed on NASDAQ OMX Stockholm First North (ticker symbol 'RUSF'). RusForest's largest shareholder is Vostok Nafta, which owns approximately 29 percent of the Company's shares. RusForest AB's Certified Adviser on First North is Pareto Öhman AB. For additional information, please visit the Company's website at www.rusforest.com or contact: Mia O'Connor, Investor Relations, telephone: +46 8 771 85 00 News Source: NASDAQ OMX 15.11.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: RusForest AB Sweden Phone: Fax: E-mail: Internet: ISIN: SE0001732728 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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