Oslo, Thursday, February 24, 2011
Stock Exchange Notification

As described in the report for the 4th quarter of 2010, Blom is in discussions with the bondholders in its bond loan ”FRN Blom ASA Senior Secured Bond Issue 2009/2012”. These negotiations have had a positive development, and the aim is a solution which will ensure a satisfactory liquidity and a sound financial basis for the company. A solution will include the following elements which will require resolutions by the company’s general meeting:

  • As part of a solution Blom shall seek to raise at least NOK 50 million in new equity, and
  • If Blom does not succeed to obtain subscriptions for such new equity by 30 April 2011, then NOK 50 million of the bond loan will be converted to a convertible loan, provided, however, that if it becomes clear prior to 30 April that a rights issue in this amount will not be completed, then the conversion will take place at such earlier time.

Based on these discussions the board of directors of Blom has today resolved to call for an extraordinary general meeting to be held on 18 March 2011. The board of directors has resolved to propose that Blom carries out a rights issue of new shares with gross proceeds of approx. NOK 50 million. The number of new shares to be issued in the share capital increase will depend upon the subscription price which will be set in connection with the extraordinary general meeting.

The board of directors also proposes that Blom take up a convertible loan of NOK 50 million. This loan will be taken up by way of a conversion of NOK 50 million of its existing bond loan referred to as ”FRN Blom ASA Senior Secured Bond Issue 2009/2012”. The loan will only be taken up if the rights issue is not successful.

When a final proposal for a solution with the bondholders is available it will be made public through a stock exchange notice.

The Extraordinary General Meeting will take place Friday 18 March 2011, 09:00, at Thon Vika Atrium, Munkedamsveien 45, Oslo. Please download Notice for EGM her.

This information is subject to the disclosure requirements according to Section 5-12 of the Securities Trading Act.

For further information please contact the CEO, Dirk Blaauw, on tel. +47 22 13 19 20.


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