This transaction marks Yorkville’s first deal in Central and Eastern Europe
(London/New Jersey, 15th September 2010) Yorkville Advisors, LLC (Yorkville), the US-based investment manager to an alternative investment fund, is pleased to announce that it has entered, on behalf of one of its funds, into a 3 million Euro Standby Equity Distribution Agreement (SEDA) with Warsaw Stock Exchange listed LST Capital (WAR:TSC), the venture capital/private equity fund with a diversified portfolio that covers new media, telecoms, chemicals, energy and manufacturing.
LST Capital entered into the SEDA as a means of raising additional capital to scale its existing portfolio companies, make new investments and grow its own team accordingly. The deal, advised out of London, marks the first that Yorkville Advisors has completed in Poland as well as Central and Eastern Europe.
Pioneered 9 years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. The terms of the SEDA enable LST Capital, at its discretion for up to 30 months from signing of the agreement, to withdraw funds of up to 3 million Euros in tranches pursuant to the terms of the SEDA, in exchange for the issue of new equity. The newly issued shares will be priced at a discount to the prevailing market price at each drawdown.
Dariusz Janus, CEO, LST Capital, said: “We invest in cutting-edge Polish companies focused on products with high-growth potential, particularly high-tech investments proven in at least one leading country in the EU or US, but not yet present in the Polish market. The SEDA with Yorkville will add to our existing equity and help us meet our ambitious growth targets. Yorkville understood our business and investee companies from the first time we met, and we believe they will prove to be a valuable partner for this growth.”
Paul Strzelecki, Managing Director, Yorkville Advisors UK, said: “This is a landmark deal for Yorkville as it is our first SEDA in Poland as well as CEE countries. Poland and the rest of the region is an important growth engine for the European economy. This is a particularly exciting first deal in the market, as by financing an investment fund, the SEDA will not just help LST Capital to expand its activity, but also help to accelerate the growth of a number of private companies.”
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About Yorkville Advisors and Yorkville Advisors UK
Yorkville Advisors UK, LLP (Yorkville UK) is the London-based sub-advisor to the New Jersey, US-based Yorkville Advisors, LLC (“Yorkville”), which is the investment manager to an alternative investment fund.
Founded in January 2001 by Mark Angelo, Yorkville specialises in providing innovative debt and equity investments and financing in publicly listed companies worldwide in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping.
Yorkville tailors its financings to each company’s need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado; London and Hong Kong. The firm also has a joint venture agreement in Italy.
About LST Capital
LST CAPITAL S.A. is a venture capital/private equity fund listed on the main market of the Warsaw Stock Exchange. Its current investment portfolio includes such companies as e-pertrol sp. z .o.o (supplier of information services on the petrol market in Poland and worldwide), podbij.pl sp. z o.o. (all-pay auctions), SOL VENTURES S.A. (planned investment into solar cell production facility), LZMO sp. z .o.o (state of the art ceramic chimneys maker and fire resistant and ceramic construction materials seller), Sunshine Garden S.A. (manufacturer of chemical fertilizers for specialist purposes) and Industry Technologies S.A. (manufacturer of ceramic parts for the energy sector).
Its subsidiaries PasażŁużycki sp. z o.o. as well as Global Connect sp. z o.o. have in their portfolio companies such as Scopak sp. z o.o., Emmerson S.A., Eurosnack S.A., Totmes TMT S.A., M4B S.A., Poltronic SA, Skipper Yachts S.A., Aures sp. z o.o., B3System S.A., Betacom S.A., 4Fin sp.
zo.o. and InwestycjeAlternatywne Profit S.A.
In 2009 LST Capital posted 1,747m PLN in sales revenue and a net profit of 450k PLN.