SFS to issue warrants

The SFS Group is calling an Extraordinary General Meeting of shareholders on May 25, 2005 to ratify a Board decision to issue a total of 26 mln warrants that may be exchanged into shares between 2005 and 2007.

The Board said it plans to issue 23.674.572 warrants to shareholders in a ratio of 1 warrant for every 11 shares held, while the remaining 2.367.457 are reserved for staff and SFS employees who will receive the warrants at the discretion of the Board.

The warrants may be exercised on the first working day of every December as follows, 2005 at the exercise price of 10 cent, Dec. 2006 at the exercise price of 12 cent and Dec 2007 at the exercise price of 15 cent.

Based on the 26 mln of 10c nominal value in circulation, the warrnat issue amountes to a 10% dilution. A further 10% flat dilution will emerge if shareholders ratify a Board proposal to issue up to 10% of the issued share capital, or 2.6 mln shares to strategic investors or for takeovers without offering the issue to existing shareholders.