SOLNA, Sweden, April 12, 2002 (PRIMEZONE) -- The Board of Directors of Frontec AB has decided to propose that the Annual General Meeting on May 15, 2002, approve the issue of a convertible debenture loan with preferential rights for employees of Frontec AB or majority-owned subsidiaries of Frontec AB.
The aim is to increase personal ownership in the company on the part of the employees in order to stimulate greater interest in the company's operations and earnings as well as increase solidarity with the company.
The Board of Directors proposes that the Annual General Meeting decide that the company raise a convertible debenture loan with a nominal value of no less than SEK 5,000,000 and no more than SEK 20,000,000 through an issue of convertible debentures that may be exchanged for Class B shares in the company with a par value of SEK 1.25.
The convertible debentures will be subscribed during the period from June 3, 2002 through June 14, 2002, with the right for the Board of Directors to extend the subscription period.
The debenture loan will fall due for payment on July 1, 2006, to the extent conversions have not been made at that point. Conversions to Class B shares may take place from May 15, 2006 through June 15, 2006.
The share capital will increase by not more than SEK 2,857,500 and the number of shares will increase by not more than 2,286,000. If the debentures are fully converted, the dilution effect will amount to not more than approximately 6.8 percent of the share capital and approximately 4.0 percent of the shares.
Frontec AB has previously issued a convertible debenture loan of SEK 20 million to employees of the Group. This loan was issued in October 1998 to employees of the Frontec Group at the time and was repaid in its entirety in October 2001.
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