First North opens in Latvia

01.06.2007 VLN

The launch of First North is opening vast growth opportunities for small and medium sized companies in Latvia that faced limited access to equity financing before. Availability of financing for development and increased visibility and stronger company profile are the most frequently mentioned gains from admission on First North, according to survey carried among management representatives of companies admitted to First North in the Nordic countries.

“The alternative market First North is now open for companies in Latvia. The stock market is one of the most suitable instruments for financing business and development. It is highly recommended for companies that consider rapid growth or expansion,” says Daiga Auziņa-Melalksne, Chairman of the Board of Riga Stock Exchange.

At the present all necessary infrastructure for functionality of First North in Latvia, e.g. rules, trading system, web page is in place. Potential Certified Advisers on First North in Latvia are already in talks with a number of companies about their possible admission to the First North Baltic marketplace.

In the Baltic countries First North will operate on similar principles as in the Nordic countries but with some local differences. It will be open to companies of any size and will have less stringent rules compared to the regulated market. There is requirement for companies on First North in Latvia to enter into agreement with one of the Certified Advisers approved by Riga Stock Exchange. Certified Advisers are companies with background in corporate finance or business consulting. They will support the company throughout the application process and listing process thus enabling company’s management to concentrate on business development. Certified Advisers will also monitor company’s compliance with rules of First North. There are 7 companies in Latvia that are in process of obtaining status of Certified Advisor on First North. There is high interest from potential Certified Advisors also in Estonia and Lithuania.

First North is an alternative market created by OMX, and has already been launched as of today in Sweden, Denmark, Finland and Iceland. It lists 97 companies. The average amount of financing raised per company on First North is 3,3* million EUR. The objective of alternative market First North is to provide a wider circle of companies, through less regulations, with a possibility for growth and create a new generation of companies, while offering additional investing possibilities for investors. Companies at First North are subject to the rules of First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.

More information on First North in Baltic countries can be found on:
www.omxgroup.com/nordicexchange/firstnorth/baltic.

*Median from funds raised by companies on First North between From January 2006 to April 2, 2007.

For more information, please contact:

Tex Vertmann, Communications Manager
Tallinn Stock Exchange +372 640 8862

Āris Dreimanis, Head of Corporate Communications
Riga Stock Exchange +371 7212431

Gintare Blazyte, Communication Manager
Vilnius Stock Exchange +370 5 272 13 71