Subscription Period for New Arco Vara Shares has Started

08.08.2014 TLN

Tallinn/Riga/Vilnius, Baltic Market – August 8th, 2014

The subscription period for Estonian real estate development company Arco Vara’s new share issue commenced today and the last day for subscribing will be August 29th.

The share capital of Arco Vara will be increased by up to 2.45 million EUR by issuing up to 3.5 million new shares with the nominal value of 0.7 EUR. The issue price of the new shares will be 1 EUR per share. After the issue the new share capital of Arco Vara will be up to 5,769,195 EUR.

The shares will be offered to the existing shareholders of Arco Vara (as of the end of day at August 7th), institutional investors, employees and members of the management board and the supervisory board of Arco Vara and its subsidiaries.

Proceeds of the share issue will be used for investing in real estate development projects. Up to 2 million EUR will be used for financing the apartment development project in Tallinn (Paldiski mnt 70c). Up to 1.2 million EUR will be used for repayment of an outstanding bank loan in order to extend the loan contract for the multifunctional building located in Sofia (Madrid Blvd) until December 2017 and to continue generating rental revenue. Up to 0.3 million EUR will be used for funding new real estate development projects.

The share issue was approved by the extraordinary general meeting of shareholders of Arco Vara on July 4.

For additional details please refer to the Arco Vara offering prospectus.