Precious Woods Holding Ltd.

EANS-Adhoc: Precious Woods Holding Ltd.
Focusing, further debt reduction and securing liquidity

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  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
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Capital measures/Company Information/Capital measures/Company
Information/Sustainable Forestmanagement
26.11.2012


Zug/Zurich, 26 November 2012 - The Precious Woods Group invites its shareholders
to an extraordinary general meeting, to be held on 18 December 2012, in order to
present the planned capital measures aimed at securing liquidity and to report
on the current business year.

At the extraordinary general meeting, the Board of Directors of the Precious
Woods Group will report on business performance in 2012 and the implementation
of the measures communicated in the Half-Year Report. With a view to securing
liquidity over the medium term, the Board will present a coordinated package of
capital measures aimed at enabling existing shareholders and new investors to
participate. Additionally, the Board will also explain the sale of the Group's
25% stake in Precious Woods Central America (PWCA) and the associated strategic
focus and further debt reduction.
In its reporting on the first half of 2012, Precious Woods announced a
comprehensive package of measures that focused on improving operating
performance and securing liquidity. All the measures announced have been
implemented fully or extensively:


-       With a view to securing liquidity over the medium term, the Board of
Directors of Precious Woods will propose an ordinary, conditional and approved
capital increase at the extraordinary general meeting to be held on 18 December
2012. The ordinary capital increase is supposed to increase capital by 9% to CHF
3 747 806 and will offer all shareholders the opportunity to participate in the
capital increase. Conditional capital is to be increased from CHF 1 450 000 to
CHF 1 578 689 and approved capital from CHF 800 000 to CHF 1 547 260, with a
view to creating flexibility for future convertible bonds. A total of CHF 5
million has already been promised by existing and new investors for securing
liquidity over the medium term.

-       The announced focusing and further debt reduction was achieved by
selling recently the 25% stake in PWCA to the two co-shareholders. The
conditions are the same as those agreed a year ago. The decision to sell was
made in particular because the major shareholders are planning further
investments with which Precious Woods could not have kept pace in terms of
capital. This would have resulted in a significant dilution. With the sale of
the 25% stake in PWCA, the holding has reduced its debts by approximately CHF 12
million.

-       Operating costs have been reduced further across all business units. The
turnaround in Brazil is gathering pace, with a small net profit being achieved
so far in the second half of the year. The situation in Gabon has stabilized
following the improvement in the logistics situation, a development that will
however not yet impact on the figures until 2013. Production has already been
increased significantly in recent weeks, and helps us to look forward to 2013
with confidence. In addition, Precious Woods Gabon has appointed a new CEO,
Frédéric Ober, who has extensive managerial experience in the forestry and
timber industry in Africa. In Europe, the situation remains difficult due to the
sluggish construction economy and subdued markets. CER certification at Precious
Woods Amazon has been delayed further until the first half of 2013, due to
external circumstances.

-       Taken as a whole, however, the operational progress made will not be
sufficient to offset, over the entire year, the negative impact of the
logistical problems in Gabon in the first half of 2012. The target of a positive
EBITDA for 2012 will, therefore, not be met. Precious Woods is expecting the
EBITDA to remain at a similar level as in the previous year.


-       The delisting of the registered shares on the SIX Swiss Exchange has
been approved for 12 August 2013, with the last day of trading scheduled for 9
August 2013. Subsequently, trading will be processed via the OTC platform of
Zürcher Kantonalbank. The delisting announcement was published on the Precious
Woods website on 10 October. The tradability of the shares and the quality of
reporting for shareholders will continue to be assured on the OTC platform.

The invitation to the extraordinary general meeting has been published together
with the complete agenda and the proposals from the Board of Directors on the
Precious Woods website (www.preciouswoods.com) and in the Swiss Official Gazette
of Commerce (SOGC).

end of ad-hoc-announcement
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Precious Woods is an international company active in the sustainable management
and use of tropical forests. The company's core activities include reforestation
and sustainable management of tropical forests, timber processing and the
trading of FSC-certified timber products. The generation of emission rights and
electricity from wood waste represent further integral elements of the company's
business. Shares of Precious Woods Holding Ltd have been listed on the SIX Swiss
Exchange since March 2002. Additional information about Precious Woods can be
found at www.preciouswoods.com

This document includes forward-looking statements that reflect the Company's
intentions, beliefs or current expectations and projections about the Company's
future results of operations, financial condition, liquidity, performance,
prospects, strategies, opportunities and the industry in which it operates.
Forward-looking statements involve all matters that are not historical fact.
Such statements are made on the basis of assumptions and expectations which,
although the Company believes them to be reasonable at this time, may prove to
be erroneous.


Further inquiry note:
Precious Woods Holding AG, Jacqueline Martinoli, Head of Finance /
Communications, Tel. +41 44 245 80 15, Fax +41 44 245 81 12,
media@preciouswoods.com

end of announcement                               euro adhoc 
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issuer:      Precious Woods Holding Ltd.
             Baarerstrasse 79
             CH-6301 Zug
phone:        +41 44 245 80 10
FAX:          +41 44 245 80 12
mail:     office@preciouswoods.com
WWW:      http://www.preciouswoods.com
sector:      Forestry & Timber
ISIN:        CH0013283368
indexes:     SPI
stockmarkets: Main Standard: SIX Swiss Exchange 
language:   English
 



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