Afarak Group Plc Regulatory News (AFRK)

7 Jun 2019 14:00

14:00 London, 16:00 Helsinki, June 7, 2019 - Afarak Group Plc ("Afarak" or "the Company")

AFARAK GIVEN DECISION ON SPECIAL AUDIT

The Regional State Administrative Agency for Southern Finland gave today its decision concerning a demand for conducting a special audit in the Company.

In June 2018, certain minority shareholders of the Company submitted an application to the Regional State Administrative Agency for Southern Finland for conducting a special audit.

In its decision, the Regional State Administrative Agency finds that the application discloses weighty reasons for reviewing the regularity of transactions made with all companies potentially belonging to the immediate circle of Mr Danko Koncar. In other respects, the Regional State Administrative Agency has rejected the applicants' claims.

By its decision, the Regional State Administrative Agency orders audit firm Idman Vilån Grant Thornton Oy, with Chartered Accountant Jussi Savio as principal auditor, subject to their agreement, to conduct a special audit of Afarak Group Plc’s administration and accounts for the financial periods 1 January to 31 December 2015, 1 January to 31 December 2016 and 1 January to 31 December 2017 and for the period from 1 January to 30 April 2018 in order to clarify the business and legal transactions conducted by Mr Danko Koncar with his probable immediate circle.

The Company’s CEO Guy Konsbruck: “We are pleased that a decision has now been given and that the audit is limited so that it that does not cause the Company significant cost burdens or burden human resources. Out of many accusations by the applicants only this one issue was seen to give reason for special audit. It gives the Company comfort that it is very well in compliance with its Corporate Governance rules. According to the Company’s view, the transactions described do not exist, but the matter is obviously now under review. We will be cooperating with the auditor to ensure an expeditious auditing process and we are hoping that the Special audit is carried out as soon as possible. In accordance with the Companies Act, shareholders will be informed of the results of the audit in due time.”

The Board of DirectorsAfarak Group

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.comJean Paul Fabri, PR Manager, +356 2122 1566, jp.fabri@afarak.com

Financial reports and other investor information are available on the Company's website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

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www.afarak.com