AIM Italia - Ernesto Mocci - Methorios Capital

IKF‣ IKF is an AIM Italia listed investment company whose main activity is in thevaluation, purchase and sale ofholdings in various companies, similar to that of a private equity firm.‣ The investment strategy of IKF is to target companies not solely on an IRR basis but also on their potential forgrowth. IKF does not have a specific sector focus and may also target distressed assets and companies that are readyfor a potential turnaround. However the main targets of IKF are small and medium cap Italian companies, bothlisted and private, that have a niche in their respective markets.‣ The investment duration of IKF is intended for the medium to long term and does not impose a strict exit optionfor IKF in its investments. t The company will not invest in venture tr capital, companies owned by pbli public institutionsor companies part of large international groups.‣ In July 2010 IKF provided part of the financing of € 100,000 to Eccellenze Alimentari Italiane Spa that was used tofront up start up costs of the company. IKF plans to perform a capital raise to the value of € 5.8 mln to develop theactivity of this company.‣ In July 2010 the subsidiary PKarton Spa acquired a branch of Global Paper Srl involved in the activity of cartonand paper products for the value of € 0.5 mln.‣ In May of 2009 IKF performed a capital increase to the value of € 8mlnthatresultedin the placement of 8 millionshares at a listing price of € 1.00. This transaction was performed with utilising warrant certificates on theunderlying shares (1 warrant for every individual share).‣ Later in December 2009 the company performed an additional capital increase for a listing of an additional 755,000shares on the AIM Italia market, at a price of € 1.00. Today the market float of IKF s equivalent to 25% of thecompany’s outstanding shares.52