Glaston Corporation conducts a directed convertible bond offering based on the same authorization and with terms and conditions similar to the convertible bonds issued in June 2009
GLASTON CORPORATION Stock Exchange Release 18.2.2010 at 9.25
Glaston Corporation conducts a directed convertible bond offering based on the same authorization and with terms and conditions similar to the convertible bonds issued in June 2009 Glaston Corporation's (”Glaston” or the ”Company”) Board of Directors has in its meeting on 18 February 2010 resolved, based on the authorization granted by the Extraordinary General Meeting of Shareholders on 8 June 2009, to issue convertible bonds with the maximum principal amount of EUR 6,250,000 (the ”Bonds”).Based on the same authorization the Company issued on 16 June 2009 convertible bonds amounting to a maximum of EUR 30 million that were subscribed for the total amount of EUR 23,750,000. The terms and conditions of the Bonds to be issued now are similar to the convertible bonds issued on 16 June 2009. The Bonds are issued in deviation from the shareholders' pre-emptive subscription rights to investors selected by the Board of Directors of the Company. The Bonds are divided into negotiable promissory notes of the nominal value of EUR 50,000. The issue price of the Bonds is 99 per cent and the principal amount of the Bonds carries a fixed interest rate of 7 per cent per annum, which is payable annually in arrears. The conversion price of the shares that the Bonds may be converted into is EUR 1.30. The right to convert the Bonds into shares commences on 6 April 2010. The maturity date of the Bonds is 19 June 2014 unless previously redeemed, converted or purchased. The Company may after 30 June 2012 redeem the Bonds at their principal amount together with interest accrued to such date provided that the closing price of Glaston's share has for a specified period been at least 150 per cent of the prevailing conversion price as well as at any time if less than 15 per cent of the aggregate principal amount of the convertible bonds issued on 16 June 2009 and the Bonds remains outstanding. If the conversion rights are fully exercised, the number of shares issued would, after the conversion and calculated based on the original conversion price, correspond to approximately 5.7 per cent of all the shares in Glaston taking into account the number of shares issued by the date of this release. The Company intends to apply for admission of the Bonds for public trading on the Nasdaq OMX Helsinki on 31 March 2010 at the latest. The Bonds are issued for purposes of strengthening the Company's financial standing, optimizing the capital structure and permitting investments. Thus, there is a weighty financial reason to deviate from the shareholders' pre-emptive subscription rights. The subscription period commences on 18 February 2010 at 9.30 a.m. (Finnish time) and ends on 18 February 2010 at 3.00 p.m. (Finnish time). The Board of Directors of Glaston may decide to discontinue or extend the subscription period. The arranger of the issue is Summa Corporate Finance. In Helsinki, 18 February 2010 GLASTON CORPORATION The Board of Directors THESE MATERIALS ARE NOT AN OFFER FOR SALE OF THE BONDS IN THE UNITED STATES OR IN ANY OTHER JURISDICTION. THE BONDS MAY NOT BE SOLD IN THE UNITED STATES WITHOUT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. GLASTON OYJ ABP DOES NOT INTEND TO REGISTER ANY PORTION OF SUCH OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES. For additional information, please call President&CEO Arto Metsänen, +358 10 500 6100 Sender: Glaston Corporation Agneta Selroos IR and Communications Manager Tel. +358 10 500 6105 Glaston Corporation Glaston Corporation is an international glass technology company. Glaston is the global market leader in glass processing machines, and a comprehensive One-Stop-Partner supplier to its customers. Its product range and service network are the widest in the industry. Glaston's well-known brands are Bavelloni in pre-processing machines and tools, Tamglass and Uniglass in safety glass machines, and Albat+Wirsam in glass industry software. Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Mid Cap List. www.glaston.net