Supervisory Board decision on refinance of bonds i

In 2014 AS Baltika issued convertible bonds in the amount of 3 million euros with subscription price 0.5 euros. The share subscription period is in July 2017. In case the Investors do not subscribe for the shares AS Baltika will repay the bonds together with accrued interest, in total up to 3.6 million euros. AS Baltika plans to refinance these convertible bonds by issuing new convertible bonds.

On 22th of March 2017 the Supervisory Board of AS Baltika decided to propose to the Annual General Meeting of shareholders, to issue convertible bonds with bondholder option in the total amount of 4 to 4.5 million euros. The subscription price of the convertible bond will be an average stock price for the 20 days before the Supervisory Board decision, which is 0.32 euros. These two-year convertible bonds will carry an annual interest rate of 6% and will be issued with public offer. Detailed terms will be included with the Annual General Meeting proposed resolutions on 12^th of April 2017.

KJK Fund, Sicav-SIF, the largest shareholder of AS Baltika, is willing to subscribe the new bonds in amount of 3.6 million euros.

Maigi Pärnik-Pernik Member of the Management Board maigi.parnik@baltikagroup.com