Kotkamills Group Oyj - Decisions of general meeting

Kotkamills Group Oyj: ISSUE OF NEW SHARES TO EXISTING SHAREHOLDERS AND CERTAIN KEY EMPLOYEES AND NEW SHAREHOLDER LOANS

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

16 February 2017, at 3:30 pm (CET + 1)





The shareholders of Kotkamills Group Oyj have on 16 February 2017 unanimously
resolved to offer by a directed issue 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 (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 expires on 22 February 2017. The New
Shares represent in aggregate approximately 18.02 per cent of the existing
shares in the company. In addition, the board of directors was authorised to
issue a maximum of 68,233 series B shares held by the company to key employees
of the company or its subsidiaries as part of the company's management incentive
system in deviation from the shareholders' pre-emptive subscription rights.



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 2,142,427. Pursuant to the terms of the share issue of the New A Shares,
the holders of series A shares are in connection with their participation in the
share issue required to grant shareholder loans to the company up to the
aggregate amount of EUR 17,920,698. The terms of such shareholder loans would in
material respects be 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 would obtain financing in the aggregate amount of
EUR 20,063,125 assuming subscription of the New Shares and the Treasury Shares
in full.



If all New Shares are not subscribed based on the primary subscription rights,
the board of directors is authorised to resolve on the secondary subscription
right, the subscription period and the payment of subscription price of any
shares not subscribed.



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.





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