ProfilGruppen announces guaranteed rights issue of approx. MSEK 40

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| Source: ProfilGruppen AB
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  · The Board of Directors of ProfilGruppen AB (publ) (“ProfilGruppen ” or the
“Company”) has resolved on a rights issue of approximately SEK 40 million,
before transaction costs
  · The rights issue is fully secured
  · The rights issue is subject to approval by the Extraordinary General
Meeting, which will be held on 11 June 2014
  · Full terms of the rights issue will be announced on 10 June 2014 at the
latest
  · The trading in subscription rights is expected to take place as from 19 June
2014 up to and including 30 June 2014
  · The subscription period will run as from 19 June 2014 up to and including 3
July 2014
  · The rights issue proceeds will be used in order to strengthen ProfilGruppens
financial position and profitability

Background and reasons
ProfilGruppen is a supplier of customised aluminium extrusions and components.

The demand for aluminium profiles has since 2010 had a strong decline. During
2011 a cost improvement program was implemented, reducing the overhead cost by
approximately MSEK 25 on a yearly basis, equivalent to 42 full time employees.
In order to counteract a quick fall in production volumes a number of customer
contract’s was signed that, over time, has become disadvantageous for the
Company. During 2013 ProfilGruppen heavily increased its sales and marketing
resources which in the short term burden the result.

The expected financial recovery has taken longer than expected and it is the
Board’s evaluation that the development of the result risks to harm the
customer’s, suppliers and creditor’s confidence in ProfilGruppen. In order to
strengthen the Companies financial position and show that the owners has a long
term confidence in the Company the Board of Directors resolved, subject to the
Extraordinary General Meeting’s approval, on a new share issue of approximately
SEK 40 million (before transaction costs). The rights issue proceeds will be
used in order to strengthen ProfilGruppens financial position and profitability

The Board of Directors of ProfilGruppen believes that the combined impact of the
increased sales and marketing resources and the rights issue will improve the
Company's financial position and increase profitability.

The rights issue
The Board of Directors has on 19 May 2014 resolved, subject to the Extraordinary

General Meeting’s approval, on a new share issue of approximately SEK 40 million
(before transaction costs), with preferential rights for the Company’s
shareholders, in proportion to the number of shares held as of the record date.
In the event that not all shares are subscribed for with preferential rights,
the Board of Directors shall resolve on the allotment of shares subscribed for
without subscription rights up to the maximum amount of the new share issue. In
such case, such shares shall be allotted to those who have subscribed for shares
by the exercise of subscription rights and notified that they wish to subscribe
for additional shares, irrespective of whether they were shareholders on the
record date, pro rata in relation to the number of subscription rights each one
has exercised for subscription. In so far as allotment in

accordance with the above cannot be executed pro rata, allotment shall be made
by drawing of lots. Any remaining shares shall be allotted those who have
provided guarantees for the share issue, pro rata in relation to the provided
guarantee undertakings.

The Board of Directors will no later than on 10 June 2014 resolve, and announce,
the maximum amount of the share capital increase, the number of subscription
rights received per share and the number of subscription rights required to
subscribe for a new share, the maximum number of shares to be issued and the
subscription price to be paid for each new share.

The record date for participation in the rights issue is 17 June 2014 and the
subscription period (subscription through payment) runs as from 19 June 2014 up
to and including 3 July 2014, with the right for the Board of Directors to
extend the subscription period. The trading in subscription rights is expected
to take place as from 19 June 2014 up to and including 30 June 2014.

The rights issue is subject to approval by the Extraordinary General Meeting,
which will be held on 11 June 2014. For further information, please see notice
of the Extraordinary General Meeting in separate press release.

Subscription and guarantee undertakings
The rights issue is fully secured. Ringvägen Venture AB, Barranca Ltd, Lars
Johansson, Mats and Kerstin Egeholm, have undertaken to exercise their
preferential right in the new share issue, corresponding in total to
approximately 51.1 per cent (so-called subscription undertakings). The same
shareholders have guaranteed to subscribe for the remaining part of the new
share issue (so-called guarantee undertakings). The guarantee commission amounts
to 4 per cent of respective guarantors’ maximum guaranteed amount according to
the guarantee undertakings

Preliminary timetable for the rights issue
10 June,                        The subscription price and offer ratio are
announced in a press release
at the latest

11 June                          The Extraordinary General Meeting resolves on
approval of the Board of Directors’ rights issue resolution

12 June                          Last day of trading in ProfilGruppen’s share
including subscription rights

13 June                          ProfilGruppen s share is traded excluding
subscription rights

17 June                          Record date for allotment of subscription
rights, i.e. shareholders who are registered in the Company’s share register as
of this day will receive subscription rights for participation in the new share
issue

18 June                          Estimated date for publication of the
prospectus

19 June-30 June            Trading in subscription rights

19 February-3 July        Subscription period (subscription through payment)

Around 9 July               Announcement of the preliminary outcome of the new
share issue

Important information
The information in this press release does not contain or constitute an offer to
acquire, subscribe or otherwise trade in shares, subscription rights or other
securities in ProfilGruppen. Any invitation to the persons concerned to
subscribe for shares in ProfilGruppen will only be made through the prospectus
that ProfilGruppen estimates to publish on or around 18 June 2014.

This press release may not be released, published or distributed, directly or
indirectly in or into the United States, Australia, Hong Kong, Japan, Canada,
New Zealand, Singapore or South Africa or any other jurisdiction where such
action is wholly or partially subject to legal restrictions or where such action
would require additional prospectuses, registrations or other actions in
addition to what follows from Swedish law. Nor may the information in this press
release be forwarded, reproduced or disclosed in such a manner that contravenes
such restrictions or would require such requirements. Failure to comply with
this instruction may result in a violation of applicable securities laws.

No subscription rights, BTAs (interim shares) or new shares have or will be
registered under the United States Securities Act of 1933 (“Securities Act”) or
securities legislation in any state or other jurisdiction in the United States
and may not be offered, subscribed, sold or transferred, directly or indirectly
within the United States, other than pursuant to an exemption from the
registration requirements of the Securities Act and in accordance with
securities laws in relevant state or other jurisdiction in the United States.

This press release may contain forward-looking statements which reflect
ProfilGruppen 's current view on future events and financial and operational
development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”,
“plan”, “estimate” and other expressions which imply indications or predictions
of future development or trends, and which are not based on historical facts,
are intended to identify forward-looking statements. Forward-looking statements
inherently involve both known and unknown risks and uncertainties because they
depend on future events and circumstances. Forward-looking statements do not
guarantee future results or development and the real outcome could differ
materially from the forward looking statements.
_________________________________________

For more information, please contact:
Kåre Wetterberg, acting CEO
Mobile  +46 (0)70-656 40 14
E-mail: kare.wetterberg@profilgruppen.se

Peter Schön, CFO
Mobile +46 (0)70-339 89 99
E-mail: peter.schon@profilgruppen.se


ProfilGruppen is a supplier of customised aluminium extrusions and components.

This information is published in accordance with applicable laws, listing
agreements and regulations.
The information was submitted for publication at 20.00 CET on May 19, 2014.