Pyynikki Brewery was planning to organize a directed issue in addition to the general share issue and to merge its share series, but canceled the plans due to the confusion of the shareholders.
From Tampere brewing Pyynikin Brewing Company plans to change its plans to finance the purchase of property and equipment for the Estonian Haljala brewery in Harbo, Denmark.
On the implementation of the project was reported last week when Pyynikki Brewery said he had received a permit to operate a brewery in Estonia.
The Pyynikki brewery has been to finance the project with a general share issue and loan financing, as well as with other larger investors.
The company has also been planning to arrange a directed share issue to a Tampere-based entrepreneur To Samu Saarikoski and combines its A and B share series. Of these proposals, an extraordinary general meeting was scheduled to be held on Friday, which has now been canceled. The amalgamation of the share series and the directed issue have also been canceled.
About it says the Finnish Share Savers Association Visa Money magazines, according to which information about the directed share issue and the merger of share series has come as a surprise to some investors. Some investors also had time to get upset before the company decided to cancel its intentions.
The main shareholders of the company are Thomas and Rauno Peren families. In addition to them, Saarikoski would have become one of the main owners of the brewery.
Founder and co-owner of Pyynikki brewery Tuomas Pere says that the amount of the directed share issue would have been approximately EUR 1 million. According to Peren, the company has raised more than one million euros with its general issue, which began in March.
Overall, the total budget for enlargement to Estonia would be around EUR 3-4 million, according to Pere.
“The issue will run until the end of April and the government has the right to continue it. In addition, loan money is used to finance the project, ”says Pere.
Stock Savers managing director Victor Snellman says on the Wise Money website that, according to the contacts the association received, only shareholders from previous issues knew about the intentions and directed issue of the share series.
According to Tuomas Peren and Rauno Pere, Chairman of the Board, Snellman’s claim that only some of the shareholders would have received the information is incorrect. According to them, a shareholder letter has been sent to all, including the new shareholders, and they have also been invited to the press conference.
According to Snellman, the board of Pyynikki Brewery has “completely failed in its communication,” which may also affect the company’s reputation.
Are you worried about reputational damage at Pyynikki Brewery?
“No, on the contrary. This is based on the opinion of some dozens of B shareholders when we have a total of 10,000 shareholders. If we have failed somewhere, then in that when we were invited to the Extraordinary General Meeting, we announced that we would hold a press conference two days before the Annual General Meeting. We said that it will be clear at that time what everything means, ”says Tuomas Pere.
“Prior to this event, a few shareholders have had time to say that we have not disclosed. However, everything has been taken care of as it should have been. ”
He says, that, in hindsight, a press conference should have been held as soon as the invitation to the Extraordinary General Meeting was issued.
Pyynikki Brewery still plans to hold a press conference for its shareholders on Wednesday at 4 pm. The event is now scheduled to tell how the Estonian project will be continued. On the other hand, no Friday Extraordinary General Meeting will be held as the company canceled the directed issue and the merger of the share series.
According to Tuomas Peren, the proposed merger of the share series would have been related to the fact that for many large investors it has been a big question.
“So for the big question of a big investor, I mean, it’s been a requirement for them to invest,” he explains.
Stock series the merger would have required the approval of all A shareholders and also a qualified majority of B shareholders, ie two thirds.
“Some of the A shareholders wanted to cancel this, so there was no other option.”
The company has not informed the media of its intention to carry out a directed issue or merge its share series. Tuomas Pere describes that in any case the Estonian project will be implemented.
“We have many different options and now we choose the best option.”
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