Baltika to issue shares

  • 2011-04-20
  • From wire reports

TALLINN - Estonian fashion company Baltika announced that it has made a proposal to its shareholders to increase the company’s share capital by issuing additionally 3,150,000 ordinary shares with a nominal value of 0.70 euros, with the issuance price of one euro, reports news agency LETA. The company will use the money raised from the emission for financing future growth, Baltika told the Tallinn bourse.

Baltika is in co-operation with international creative agency Dan Pearlman in developing and renewing its two biggest brands, Monton and Mosaic, including new store concepts for both brands. Based on the new concepts, the company will gradually upgrade existing stores and is planning new store openings.

German agency Dan Pearlman, chosen to be the cooperation partner for the project, has a very strong portfolio in the fashion industry. The agency has done cooperation with brands like Campus by Marc O’Polo, Betty Barclay, Pimkie, 361°, Tally Weijl, Colin’s, Escada, New Yorker, Street One, Adidas, Puma and Reebok.

The group will also finance its new development projects like the Monton e-store, shop-in-shop and franchise concepts. Additional money, raised from the emission, will help the Group to guarantee financing in buying of inventory corresponding to increasing sales.

Baltika’s general shareholder meeting takes place on May 11, 2011.