MJ Maillis will issue 4.1 million new shares to be distributed to majority owner, Greek MJ Maillis Industrial Packaging System &Technologies, the company said in a statement.
The Greek company holds 81.67% in the Romanian packaging maker.
The proposal is subject to shareholder approval at a meeting due July 21.
MJ Maillis expects its loss will narrow 47% to RON4.9 million in 2011, as sales are forecast to increase 56% to RON47.5 million.
On the Bucharest bourse June 1, MJ Maillis closed flat at RON2 a share. (EUR1=RON4.2008)