December 7 (SeeNews) - Bulgarian lavender oil and cosmetics producer Lavena [BUL:4L4] said on Friday that it intends to invest part of the proceeds of its forthcoming capital increase to partially finance a 7 million levs ($4.1 million/3.6 million euro) project for expanding the company's production and storage facilities.
Lavena is seeking to raise up to 5.6 million levs through the issuance of 1,599,905 new shares at a price of 3.5 levs each, the company said in its capital increase prospectus.
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The capital hike will be considered successful if at least 1 million shares are subscribed for and paid for, in which case the proceeds from the capital increase will total 3.5 million levs.
Lavena will invest 3 million levs from the capital increase proceeds into its capacity expansion project, as the remaining part of the funds needed will be secured via a loan.
All other proceeds from the capital increased will be used to pay back debt owed to Lavena's majority owner - Baltimore. Baltimore holds a 74.96% stake in Lavena.
If the issue is fully subscribed, Lavena will grow its capital to 9.92 million levs from 8.32 million levs.
In August, Lavena increased its capital to 8.32 million levs from 319,981 levs via a bonus share issue. Existing shareholders received 25 new shares for each Lavena share they owned before the increase.
Established in 1962, Lavena owns lavender plantations and exports its products to Europe, Asia, Africa, Australia and the U.S. Bulgaria is among the world's biggest producers of lavender oil.
(1 euro = 1.95583 levs)