Incap Corporation’s Board of Directors decided on private placement

Incap Corporation   Stock Exchange Release    
11 April 2012 at 1.45 p.m.

INCAP CORPORATION’S BOARD OF DIRECTORS DECIDED ON PRIVATE PLACEMENT

Incap Corporation’s Board of Directors has decided on a private placement on the basis of the authorisation issued by the Annual General Meeting on 13 April 2011. The private placement is a part of the financing arrangement prepared by the company, aiming to improve the company’s equity ratio and solvency and to ensure the continued development of the company. The on-going negotiations on the financing cover the renewal of the company’s convertible bond maturing in May and the ensuring of sufficient additional funding for business operations, among others.

The company will issue a total of 2,168,100 new shares to the major shareholders of the company. The new shares amount to approximately 11.6% of all shares in the company prior to the share issue.

The issue of new shares deviates from the pre-emptive right of the current shareholders by way of offering the right to subscribe for new shares entirely to the company’s major shareholders. There is a significant financial reason for the company to deviate from shareholders’ pre-emptive subscription rights because the purpose of the private placement is to improve the company’s solvency and reinforce the company’s financing structure through a quick, low-cost arrangement.

A subscription price of EUR 0.35 shall be paid for each share to the company. The amount paid will be recognised in full in the reserve for invested non-restricted equity. The new shares convey a right to dividend and other shareholder’s rights as from the registration of the new shares.

All of the new shares offered in the share issue have been subscribed today, and the Board of Directors has approved the subscriptions. From the persons closely related to the company, Kalevi Laurila, the Chairman of the Board of Directors of Incap, has subscribed for the new shares.

The company aims to register the new shares in the Trade Register as soon as possible. Incap will file an application for the admission of the new shares to public trading on the Helsinki Stock Exchange and will draw up a prospectus for this purpose.

INCAP CORPORATION

Sami Mykkänen
President and CEO

Additional information:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Kirsti Parvi, CFO, tel. +358 50 517 4569
Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40 504 8296

DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.incap.fi

INCAP IN BRIEF
Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and manufacture to maintenance services. Incap’s customers include leading equipment suppliers in energy-efficiency and well-being technologies, for which the company produces competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China. The Group’s revenue in 2011 amounted to around EUR 68.9 million, and the company currently employs approximately 730 people. Incap’s share is listed on the NASDAQ OMX Helsinki. Additional information: www.incap.fi.