Riga, 2016-08-04 15:19 CEST (GLOBE NEWSWIRE) --
Management Board of JSC “Latvijas balzams” (hereinafter “the Company”) provides additional information about the proposed draft amendments to the Articles of Association that foresee to establish Special Purpose Reserves at the amount of EUR 5 311 764 for real estate and reorganization related projects development and preven-tion of related risks.
1. The Company’s Management Board points out that the establishment of the Special Purpose Reserves is based on Annual Financial Statements and Consolidated Financial Statements Law. The first appendix of this Law provides that a company may include several types of reserves in its balance sheet equity item, among which there can be reserves defined in the articles of association of the company. It follows that in the company’s articles of association may be established several types of reserves. In its turn International Accounting Standards (or IAS) define that the company may establish reserves by observing the rules and regulations of local laws.
Laws and regulations do not foresee any limitations imposed on the establishment of the reserves, so it is left to the competence of the shareholders' meeting, which is entitled to take a decision on the amendments to the articles of association and establishment of reserves.
2. The proposal to establish such Special Purpose Reserves fund is based on the fact that the Company owns several real estates - factories, warehouses, bureau, which all ensure the business of the Company. The buildings are located at different addresses (Čaka, Briāna, Ostas, Sporta, Rūdolfa, Daugavgrīvas streets) and they are in the different technical condition. Several of these real estates are located in the territory of Riga historical center which also imposes particular burdens to their maintenance and operation and raise the costs therefor.
These real estate properties require systematic investments in their maintenance and modernization in order to ensure the efficiency and competitiveness of the Company. As the Company’s future development plans and perspectives are evaluated on a regular basis, including also evaluating the other potential ways to use the real estates, as for example, to develop a museum or representation center, it is proposed to establish such a Special Purpose Reserves Fund for real estate and reorganization related projects development and prevention of related risks.
Contributions to this fund would be a voluntary decision of each shareholder.
Taking into account the long - term management experience of the Board members that has guaranteed the successful performance of the Company even during the years of the crisis, the Board evaluates this proposal as a visionary step that will guarantee the ability to implement the Company's further development plans.
Information about the Extraordinary Meeting of Shareholders of JSC “Latvijas balzams” to be held on September 8 in this year is announced on website of JSC “Latvi-jas balzams” www.lb.lv, website of the central storage of regulated information - www.oricgs.lv and Nasdaq Riga website - www.nasdaqbaltic.com.
Dana Hasana
Communications Manager, Latvijas balzams and Amber Beverage Group
Ph.: +371 67011711
Mob.:+371 26355895
E-mail: dana.hasana@amberbev.com
www.lb.lv