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Novotrade repeated AGM approves capital raise

Holding company Novotrade Rt held a repeat of its annual general meeting on Tuesday in which shareholders voted on a Ft 2.4 billion capital raise to pay for a planned solar collector factory as well as other items approved by the company's AGM on April 27. The AGM was repeated for technical reasons.

Shareholders approved the 2005 annual report and voted for the capital rise through a private placement of new shares at face value. Shareholders can subscribe to the new shares in proportion to their current holdings. Lichtenstien-based Genesis Capital Management is entitled to buy all the new shares that have not been subscribed by July 20. Novotrade board chairman Gábor Rényi said earlier that Genesis Capital, which does not own any Novotrade shares, could realistically obtain 35%-40% of shares. Deutsche Balaton AG, which has 31.57% control of Novotrade's shares, again voted against all the proposals that had been put forward at the April 27 AGM.
Novotrade's other owners are Acquisition Pro (30.14%), Clearstream Bank (21.03%) and Dominion Corporation (9.32%). The €40 million (Ft 10.5 billion) solar collector factory Novotrade wants to build would be completed by 2008, Rényi said. He declined to reveal the capacity or the location of the factory, but said it would be profitable as early as the first year.
Novotrade's audited consolidated balance sheet showed total assets of Ft 2.24 billion at the end of 2005. Net assets were Ft 1.872 billion. The profit and loss statement showed consolidated net revenue rose 10.3% to Ft 963 million in 2005, but Novotrade had losses of Ft 221 million. A proposal at the April 27 AGM to reduce the nominal value of shares from Ft 500 to Ft 100, which would require a two-thirds majority, was removed from the agenda of the June 27 AGM, because Deutsche Balaton voted against the resolution at the first annual meeting.