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Desarrolladora Homex Announces Shareholders Approve its Capital Increase Plan

At an extraordinary shareholders' meeting of Desarrolladora Homex, S.A.B. de C.V. ("Homex" or "the Company") ( HXM, BMV: HOMEX) yesterday, shareholders voted to approve a plan for a capital increase in the range of 5 to 6 percent of the Company's current capital to be subscribed through a potential follow-on offering. The plan may be implemented by the Board at any time for a period of eleven months, through October 2010.

"We took this step as a proactive measure to be prepared for future growth opportunities for the Company and we will continue to pursue a conservative investment strategy to preserve cash, while maintaining our focus on improving Homex's working capital cycle. Receiving shareholder approval for a possible capital increase through a follow-on offering in Mexico gives us an alternative which we could use if required to pursue strategic investments, at the same time that our recently filed F-3 provides a similar option to raise capital in the United States market," commented Eustaquio de Nicolas, Chairman of Homex Board.

Source: http://www.homex.com.mx/

<small>Posted 21st November 2009</small>

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