Kotkamills Group Oyj - Decisions of general meeting

Kotkamills Group Oyj: SUBSCRIPTION OF NEW SHARES BY EXISTING SHAREHOLDERS AND CERTAIN KEY EMPLOYEES AND UTILISATION OF NEW SHAREHOLDER LOANS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

24 February 2017, at 5 pm (CET + 1)





The shareholders of Kotkamills Group Oyj unanimously resolved on 16 February
2017 on a directed issue of a maximum of 1,875,417 new series A shares (the "New
A Shares") of the company for subscription to the holders of series A shares pro
rata to their holding of series A shares, a maximum of 63,125 series B shares
held by the company (the "Treasury Shares") for subscription to certain key
employees of the Kotkamills group and a maximum of 203,885 new series B shares
(the "New B Shares" and together with the New A Shares, the "New Shares") of the
company for subscription to the holders of series B shares pro rata to their
holding of series B shares, taking into account the Treasury Shares offered for
subscription.



The subscription period expired on 22 February 2017. The holders of series A
shares subscribed the maximum amount of 1,875,417 New A Shares offered for
subscription in the directed share issue and the holders of series B shares
subscribed the maximum amount of 63,125 Treasury Shares and 189,860 of the in
total 203,885 New B Shares offered for subscription in the directed issue. The
subscribed New Shares represent in aggregate approximately 17.90 per cent of the
total number of shares in the company.



The subscription price for each New Share and each Treasury Share is EUR 1.00
and the aggregate subscription price for the New Shares and the Treasury Shares
is EUR 2,128,402. Pursuant to the terms of the share issue of the New A Shares,
the holders of series A shares granted in connection with their participation in
the share issue shareholder loans to the company in the aggregate amount of EUR
17,920,698. The terms of the shareholder loans are in material respects
equivalent to the terms of the existing shareholder loans.



The purpose of the share issue and the utilisation of the shareholder loans is
to ensure full utilization of the commercial ramp-up of the new board machine.
As a result of the share issue and the utilisation of the new shareholder loans,
Kotkamills Group Oyj will obtain financing in the aggregate amount of
EUR 20,049,100.



After the share issue has been recorded in the Finnish Trade Register, the total
number of shares issued by the company will be 13,602,806, of which 12,281,694
will constitute series A shares, representing approximately 90.29 per cent of
the total number of the shares in the company, and 1,321,112 will constitute
series B shares, representing approximately 9.71 per cent of the total number of
the shares in the company. The entire subscription price of EUR 2,128,402 will
be entered in the company's reserve for invested unrestricted equity.



Kotkamills Group Oyj
Board of Directors



For additional information, please contact:



CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com



DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com



Kotkamills Group in brief



Kotkamills is a responsible partner that delivers renewable products and
performance to its customers' processes via product innovations created from
wood, a renewable raw material. The key brands of the company include Absorbex®
and Imprex®, both innovative laminating paper products for the laminate, plywood
and construction industries. Moreover, Kotkamills offers ecological, technically
sound and visually attractive wood products for demanding joinery and
construction. In summer 2016, Kotkamills started up a new board machine
producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including
the capability to add barriers on-machine. All Consumer Boards material
solutions are fully recyclable and repulpable.



Kotkamills has two production sites in Finland, located in Kotka and Imatra. The
majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.



www.kotkamills.com



Disclaimer


The information contained in this release shall not constitute an offer to sell
or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any
jurisdiction.





[]