Ukrproduct Group to increase authorized share capital by 20%

Ukrproduct Group, a leading producer and distributor of branded dairy products in Ukraine, is planning to increase its authorized share capital by 20%, to GBP 6 million or to 60 million shares, in order to assist the directors in taking advantage of the authority to allot, grant options or warrants over, offer or otherwise deal with the shares of the company, according to a company statement on the stock exchange.

The proposal was put on the agenda of a meeting of the company's shareholders scheduled for June 24, 2010.

It is also proposed the directors be authorized until 2015 to allot, grant options or warrants over, offer or otherwise deal with the company shares up to a maximum nominal amount equal to 35% of the nominal amount of the authorized but unissued company share capital.

Currently the directors have no such right, but they consider it to be reasonable to have this option.

In addition, it is planned to permit the company management to purchase up to nine million of the company's ordinary shares, while in early 2009 the directors had the right to buy back up to 10 million shares.

According to the company, on March 10 some 42,817,849 shares were put in circulation, while 67.58% of the shares were kept by the founders (Densim Group Management SA and Crensel Finance Limited), 4.09% (1,750,250 shares) were bought back, and 28.33% (12,132,822 shares) were in free circulation. Currently the share price is GBP 0.3 per share.