Announcement in Connection with Proposed Expansion of the Share capital (Part 2)
For the two big jobs in Brazil, Apodi and Elizabeth all equipment in agreement with the clients is expected to have been shipped by February 2013. The jobs have been run under strict control, and both are within 1% of estimated cost.
We do not foresee any substantial additional provision for any of these jobs, whereas we have outstanding claims, which we have just started to negotiate with EPCC, CMS and CIMA.
Total back log is at approximately 2,500 million THB, and for the new contracts received and announced during 2012 with a combined sales volume of 1,150 million THB we have just started to recognize the revenue.
LVT is at present negotiating several potential projects, so that we by end of 2012 expect a back log of more than 3,200 million THB.
The present financial situation of the company is sufficient to support back log of up to more than 4,000 million THB and to get back up LC facilities HJ Nielsen has pledged his shares as security, and it is not deemed necessary for the present operation with any capital increase.
The call for Right Offering is entirely to make the company able to enter into the JV with Max Cement with a substantial percentage as well as expansion of the activities of GCCP, which is seen as an essential potential for the company to secure assets and recurrent income for the future.