Latest Key Developments (Source: Significant Developments)
Glaston Oyj Abp Comments On Fy 2013 Guidance
Glaston Oyj Abp announced that for the fiscal year 2013, it expects net sales (revenue) to be on the 2012 level and the operating result (EBIT) to be positive. For the fiscal year 2012, the Company reported revenue of EUR 115.60 million and negative EBIT of EUR 3.40 million. According to I/B/E/S Estimates, analysts on average are expecting the Company to report EBIT of EUR 4.0 million for the fiscal year 2013. Full Article
Glaston Oyj Abp Updates on Patent Infringement Case
Glaston Oyj Abp announced that in May 2012, the Company informed that it had initiated legal proceedings in China against Luoyang North Glass Technologies Co. Ltd. (Northglass) and Luoyang Land Glass Technologies Co. Ltd. (Landglass) regarding patent infringement cases. The Patent Reexamination Board in Beijing has given decisions to invalidate the Company’s patents in question based on Land Glass' and North Glass’ invalidation claims filed after the infringement suits. The Company announced that it is disappointed on the decisions and will take further actions. In November 2010, the federal Court in Ottawa, Ontario, Canada issued judgment against North Glass in Glaston’s favor on the infringement of the Company’s two patents for its tempering and bending technology, the other patent being the same patent as in the Chinese case. A similar judgment against North Glass was issued in the United Kingdom in 2006 involving another Glaston’s patent. Full Article
Glaston Oyj Abp Closes Sale of Tampere Factory Property
Glaston Oyj Abp announced that on March 28, 2013 it closed the sale and leaseback of its factory property complex located in Tampere, Finland as announced in a release on February 21, 2013. The buyer of the property complex is Tampereen Mummu ja Poika Oy through its wholly owned real estate companies. Tampereen Mummu and Poika Oy is a real estate group belonging to Lahtiset Yhtyma. The value of the sale is EUR 12.5 million, of which the estimated gain on the sale will be above EUR 3 million. Glaston has signed a long term lease contract with Tampereen Mummu and Poika Oy and Glaston’s operations in Tampere Finland will continue without changes. The annual cost effect of the rent for Glaston will be approximately EUR 1.1 million as of April 1, 2013. Full Article
Hymy Lahtinen Oy Increases Stake in Glaston Oyj Abp
Glaston Oyj Abp announced that Hymy Lahtinen Oy has increased its stake in the Company in the Company's share issue. Before the share issue, Hymy Lahtinen Oy owned 150,200 shares in Glaston, representing 0.14% of the total number of shares and voting rights. Following the share issue, Hymy Lahtinen Oy owns 10,150,200 shares in Glaston, representing 5.24% of the total number of shares and voting rights. The calculation basis for the flagging is the total number of Glaston shares following the share issues. The number of Glaston Corporation shares and voting rights totals 193,708,336 after the share issues. Full Article
Glaston Oyj Abp Completes Share Issue and Conversion Issue
Glaston Oyj Abp announced that the Company has completed share issue of EUR 21.4 million. The Board of Directors of Glaston decided on February 28, 2013 to execute a share issue directed for subscription by public and a share issue directed for subscription by the holders of the convertible bond issued by Glaston in 2009 and debenture bond issued by Glaston in 2011. In the share issue, a maximum of 50,000,000 new shares in the Company were offered for subscription at the subscription price of EUR 0.20, and in the conversion issue, a maximum of 38,119,700 new shares in the Company were offered for subscription at the subscription price of EUR 0.30. The share subscription periods of the share issue and the conversion issue ended on March 7, 2013. On March 11, 2013 the Board of Directors of the Company approved the subscriptions of 50,000,000 issued shares made in the share issue, corresponding to EUR 10.0 million in total, and the subscriptions of 38,119,700 new shares made in the conversion issue. The shares subscribed in the share issue and the conversion share issue will be expected to be entered into the Trade Register on March 27, 2013. Full Article
Glaston Oyj Abp Updates on Share Issue; Announces Details on Long-Term Financing
Glaston Oyj Abp announced that it will publish a listing prospectus approved by Finnish Financial Supervisory Authority regarding the share issue. The Company also signed a new long-term credit facility with its current lenders on February 7, 2013. The credit facility consists of a long-term loan of EUR 26.7 million, a short-term financing limit of EUR 10.0 million and a guarantee limit of EUR 8.0 million. The transaction price of EUR 12.5 million of Tampere property complex will be used for amortizing the long-term loan. The principal of the new long-term loan will be amortized semiannually by the amount of EUR 1.3 million as of June 30, 2014. The credit facility is valid until January 31, 2016. The credit facility includes a condition that subscriptions in the Share Issue are made for a value of at least EUR 6.0 million. Credit facility includes a condition that debenture bond is fully used for payments of share subscriptions and that at least EUR 8.5 million from the principal on the convertible bond 2009 is removed from Company’s debt after Conversion Issue and the repurchase of the loan units of convertible bond. The Company also signed a contract of sale on February 28, 2013 to repurchase loan units of convertible bond issued by the Company in 2009 for a nominal value of EUR 2.0 million in total, at a 50% reduced price. The repurchase is carried out on March 1, 2013. It generates a positive financial item of over EUR 1 million to the Company. Full Article
Glaston Oyj Abp Announces New Dividend Policy
Glaston Oyj Abp announced that its Board of Directors decided on February 28, 2013 on a new dividend policy. According to this policy, the Company intends to distribute annually at least one third of the financial year’s result as dividends to shareholders. Among other things, the Company’s result from operations and prospects, financial position, need for capital, as well as other factors that the Board of Directors considers as important affect the amount of possible future dividends and the time of payment. The terms and conditions of the new credit facility signed on February 7, 2013 include a restriction for the distribution of dividends. According to the restriction, no dividend may be distributed from the financial years 2012 and 2013. The restriction will not be applied to dividend distributions as provided by law. Full Article
Glaston Oyj Abp Decides on Share Issue
Glaston Oyj Abp announced that its Board has decided to execute a share issue by offering a maximum of 50,000,000 new shares in the Company (the Issued Shares) for subscription by public, in deviation from the shareholders’ pre-emption rights (the Share Issue) at the subscription price of EUR 0.20. The share subscription period will begin on March 4, 2013 at 9.00 am. and end on March 7, 2013 at 4.00 pm. The purpose of the Share Issue is to strengthen the Company’s balance sheet and financial position. The Board of Directors decided to increase the maximum amount of the Share Issue from the planned 40,000,000 shares to 50,000,000 shares, due to, among other things, a subscription commitment related to the sale of the Tampere property complex given on February 21, 2013. Furthermore, the Board decided to execute a share issue directed to the holders of the convertible bond issued by Glaston in 2009 and debenture bond issued by Glaston in 2011 (the Conversion Issue). In the Conversion Issue, the Company will offer a maximum of 38,119,700 new shares in the Company for subscription by the holders of the convertible bond 2009 and debenture bond 2011, in deviation from the shareholders’ pre-emption rights (the New Shares). The Conversion Issue will be executed as a private placement arrangement to the holders of the bonds. The share subscription price of the New Shares to be offered in the Conversion Issue is EUR 0.30 per share. Full Article
Glaston Oyj Abp Sells Tampere Factory Property
Glaston Oyj Abp (Glaston) announced that on February 21, 2013, it has signed a binding letter of intent on the sale and leaseback of its factory property complex located in Tampere, Finland. The buyer of the property complex is Tampereen Mummu ja Poika Oy, a real estate group belonging to Lahtiset Yhtyma, on behalf of the real estate companies to be formed. The value of the sale is EUR 12.5 million, of which the estimated gain on the sale will be approximately EUR 3 million. In the letter of intent, the parties have agreed on signing a long term lease contract. The annual cost effect of the rent for Glaston will be approximately EUR 1.1 million as of April 1, 2013. The property complex consists of four plots and buildings. This area covers approximately 11 hectares and has five buildings and four unheated storage structures. The prerequisite for the execution of the sale of the property complex is that certain conditions, such as signing the lease contracts on premises to be used by Glaston, are fulfilled. The sale is estimated to be completed by the end of March 2013. The sale of the factory property is a part of the total arrangement described in the stock exchange release announced by Glaston on February 7, 2013. By means of this arrangement, Glaston strengthens its financial position and reduces the amount of its interest-bearing liabilities. Full Article
Etera Mutual Pension Insurance Company Subscribes for Shares in Glaston Oyj Abp
Glaston Oyj Abp announced that on February 7, 2013, Etera Mutual Pension Insurance Company signed a commitment to subscribe for 26,764,885 new shares in the Conversion Issue prepared by Glaston. Etera Mutual Pension Insurance Company has no shareholding in Glaston before the arrangement. If the transaction is completed, Etera Mutual Pension Insurance Company will own 26,764,885 shares in the Company, representing 14.57% of the total number of shares and voting rights. Full Article
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