Orco announced raising EUR 9.78m via issuing 100,000 new shares (at 4% discount price EUR 97.73/share) via its PACEO program with Societe Generale. Program allows Orco to issue up to 1m new shares and as a result of this latest issue, issuing capacity stands at additional 550,000 new shares. On top of that 2,567 shares were issued due to conversion of bonds and 236 shares as a result of exercising the warrants. Total number of outstanding shares thus equals 8,389,646.
The share issue is in line with the company’s cash needs to finance its acquisitions and other operating needs. As the share issue is part of PACEO program, which is in place since April 2006 and execution of warrants/bonds, we don’t expect negative reaction of the market to this news.