Riga Stock Exchange signs letter of intent with potential Certified Advisors on First North alternative market in Latvia

03.04.2007 RIG

First North is an alternative marketplace run by OMX Nordic Exchanges already in Sweden, Denmark and Iceland. First North has already attracted 86 companies from nine sectors, and its raised capital exceeds EUR 220 million. A special Baltic-market-adjusted offering of the First North will be accessible for Baltic companies via stock exchanges in Tallinn, Riga and Vilnius. The launch of First North in Latvia is planned by the end of first half of 2007.

First North will enable Baltic companies regardless their size to raise capital for growth. First North is aimed at fast growing companies, small and medium-sized companies as well more mature companies that are considering becoming listed on Baltic Main list some day. On First North companies can enjoy benefits of public market with much lighter admission and information disclosure requirements.

“Easier access to equity financing supports economic growth based on exports, innovations and daring ideas,“ says Daiga Auziņa-Melalksne, Chairman of the Board at Riga Stock Exchange.

In First North as on all alternative markets Certified Advisors play a vital role. Each company on First North will have a designated Certified Advisor. Certified Advisor will advise company on its readiness for trading and provide with support during the application process. After a company is admitted to trading on First North, the Certified Adviser takes on the task of providing ongoing advice and support, and keeping the company up-to-date on the obligations of being traded on First North. A complete list of Certified Advisers will be available at Riga Stock exchange website. Companies will be able to contract any of the Certified Advisors.

“First North experience shows that Certified Advisors make it much easier for companies to enter the market and attract investors. Being a middle-men between the company, stock exchange and investors, the Certified Advisors will play a very important role in development of alternative market,” says Indars Aščuks, Deputy Chairman of the Board of Riga Stock Exchange.
The name of Certified Advisors on First North in Latvia will be assigned to companies that demonstrate experience in business and financial consultancies, have gone through a special First North training and have signed an agreement with Riga Stock Exchange. The Letter of Intent signed with companies “Biznesa risinājumi”, “KPMG”, “Laika stars”, “PriBalt” foresee further cooperation on development of First North in Latvia and demonstrate their intention of being officially assigned the status of Certified advisor in the following months.

Vadims Jerošenko, Member of the Board „LAIKA STARS”: “The main advantages for companies in alternative market I see the possibility for companies to raise additional funds, increase recognition and build confidence in the eyes of co-operation partners.”

Rihards Svelpe, Chairman of the Board „PriBalt”: „Today Latvian manufacturers are at the crossroads – to be or not to be? Rise in the prices of resources result in rise in manufacturing costs. There is only one way – out – increasing efficiency that can be achieved by modernizing production process and introducing innovations. “To be or not to be” – it is not question about choosing slower or faster development scenario. It is decision about growth or extinction. Alternative market is excellent source of financing, an outstanding possibility for financing modernization and innovations.”

Sandris Rūgums, Chairman of the Board „Biznesa Risinājumi”: „Alternative market will provide Latvian small and medium-sized companies with a very interesting and highly needed mechanism for raising capital. It will also intensify foreign investors’ interest in securities market in Latvia.”

At present Tallinn, Riga and Vilnius Stock Exchanges are harmonising the market rules, identifying potential Certified advisors and providing training for them. Interest to become a Certified Advisor has been also expressed by other companies, e.g. Ernst & Young Baltic and others. The first step for companies to be traded on on First North is to contact Riga Stock Exchange or one of its Certified advisors in order to arrange the meeting.

For more information, please contact:

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