CLS Holdings plc has agreed to subscribe to 7,211,878 shares at a price of £1 per share in a placing to raise further capital of £15 million for Bulgarian Land Development plc, which is listed on the Alternative Investment Market of the London Stock Exchange.
The agreement to subscribe is conditional upon resolutions being passed at an Extraordinary General Meeting to be held by BLD on 14 March 2007 when, among other things, it will be proposed that Per Sjöberg, Chief Executive Officer of CLS, will become Non-Executive Chairman of BLD.
The new subscription will increase the stake of CLS in Bulgarian Land Development plc to 28.65%.
BLD develops residential and commercial property opportunities in Bulgaria which joined the EU in January 2007. Construction of its first residential project of 199 villas and apartments on the Black Sea coast is due to commence in February and is already over 35% pre-sold.
Sten Mortstedt, Executive Chairman of CLS Holdings plc, commented: "I am happy at the progress that BLD has made since its flotation in March 2006 and our further participation shows our confidence in the region, the company and its management."