HONKARAKENNE’S BOARD OF DIRECTORS RESOLVES ON A

HONKARAKENNE OYJ Stock Exchange Release 3 March 2017 at 3:00 p.m.

HONKARAKENNE’S BOARD OF DIRECTORS RESOLVES ON A DIRECTED SHARE ISSUE

The Board of Directors of Honkarakenne Oyj today carried out a directed share issue based on a share issue authorization granted by the Annual General Meeting on 15 April 2016. In the directed issue, AKR Invest Oy subscribed for 1,000,000 Honkarakenne B shares. 

The subscription price was EUR 1.50/share, i.e. EUR 1,500,000 in total. To determine the subscription price, the Board of Directors requested a fairness opinion from an outside party. The fairness opinion received supports the acceptability and accuracy of the subscription price. The subscription price paid for the shares will be entered, in full, in the company’s invested unrestricted equity fund. The subscription price has been paid in full.

The Board of Directors launched a directed share issue to reinforce the company's financial and balance sheet position. The share issue thus had a weighty reason in accordance with the Limited Liability Companies Act.

Arto Tiitinen, Chairman of the Honkarakenne Board, commented on the share issue as follows: ” The company has been looking for a new financing method for some time. The directed share issue reinforces the company's financial position and enables us to implement the development projects we have been planning. The share issue provides preconditions for the company’s long-term development and the acquisition of longer-term financing methods.”

When the new shares are entered in the Trade Register, the rights pertaining to them will be equal to those of the company’s earlier B shares. It is estimated that the subscribed shares will be admitted for public trading at Nasdaq OMX Helsinki Oy in spring 2017.

Before the share issue, the number of Honkarakenne Oyj shares entered in the Trade Register totals 5,211,419 shares, of which 300,096 are A shares and 4,911,323 are B shares. The company's registered share capital is EUR 9,897,936.00. Each B share carries one (1) vote and each A share carries twenty (20) votes. Prior to the share issue, Honkarakenne's shares in aggregate thus carry a total of 10,913,243 votes.

After the share issue, Honkarakenne Oyj’s share capital will comprise a total of 6,211,419 shares, of which 300,096 are A shares and 5,911,323 are B shares. The company’s share capital will remain unchanged and be EUR 9,897,936.00. Each B share will carry one (1) vote and each A share carry twenty (20) votes. After the share issue, Honkarakenne's shares in aggregate will thus carry a total of 11,913,243 votes.

HONKARAKENNE OYJ

Board of Directors

MORE INFORMATION

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, marko.saarelainen@honka.com

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

Financial Supervisory Authority

www.honka.com