Business
Further Investment in OSG
Further Investment in OSG.
About this update from Aurrigo International Plc
[{"type":"text","content":"\n RNS Number : 1461P Aurora Russia Limited 19 March 2009 \n \n\n\n\n19 March 2009\n\nAurora Russia Ltd to invest a further $1m in OSG Records Management Group to finance growth\n\nAurora Russia Limited (the 'Company' or 'Aurora Russia'), the AIM-quoted investment vehicle established to make equity or equity-related investments in small and mid-sized private companies in Russia, announces that it will invest a further $1m in OSG Records Management Group ('OSG RM Group'), to finance further capital expenditure, primarily for warehouse racking to meet growing storage demand.\n\nThe Company and OSG RM Group have agreed a $1m convertible loan facility ('Facility'). The Facility will provide the Company with an option to convert the outstanding principal and accrued interest at a pre-agreed valuation. Aurora Russia has invested £7.7m in OSG RM Group, (£6.0m in equity investment and £1.7m in the form of a convertible loan facility). Aurora Russia's equity stake in the company currently amounts to 39.4 %; should it chose to convert the outstanding £1.7m convertible loan facility and the further $1m convertible loan announced today, it would increase its equity stake to approximately 50%. \n\nFollowing this investment, Aurora Russia will hold approximately £4.65m of cash and cash equivalents, excluding £8.0m of cash in Kreditmart. \n\nCommenting on the investment, James Cook, Director of Aurora Russia Limited, said:\n\n'OSG RM Management is the market leader in records management in Russia, Ukraine, and Kazakhstan and continues to grow strongly as the records management market in Russia meets increasing demand. We believe that OSG RM Management will continue to remain largely protected from the economic downturn and the additional capital provided will enable OSG RM Group to strengthen its presence in its core markets and secure further market share.'\n\nEnquiries:\n\nAurora Russia Limited\nJames Cook +7 ...