Novaturas will issue new securities – aims to attract strategic investors
Having analysed strategic alternatives, the Baltic tour operator Novaturas Group will seek to raise additional capital by issuing new shares or convertible bonds to potential strategic investors. With this instrument, the company expects to raise up to EUR 5 mln., which would be used for the business development of the company, operating in Lithuania, Latvia and Estonia, as well as for the strengthening of its financial capacity and market position. The final decision on this proposal by the top management will be taken by the General Meeting of Shareholders.
“Raising additional capital is important for the company to ensure its financial capacity and to achieve its strategic objectives of strengthening its competitive advantage in the current highly dynamic tourism market, expanding its services and achieving long-term sustainable growth and value creation for shareholders. The top management of Novaturas has considered different alternatives for raising capital, and taking into account the analysis of strategic alternatives, they decided that the most efficient way with the highest potential is the issuance of new shares or convertible bonds to potential strategic investors,” says Gediminas Almantas, Chairman of the Board of Novaturas Group.
The top management of the company informs that negotiations with potential strategic investors are already underway. At this stage, there are no exact data as to which investors will be offered to purchase the newly issued securities, also whether new shares or convertible bonds will be offered, or any other terms and conditions of the issuance of new securities. Novaturas aims to complete negotiations with potential investors as quickly as possible, obtain the necessary decisions of the management bodies of the company and carry out other formalities related to attracting investors.
The top management of the company intends to present proposals to the General Meeting of Shareholders as to how the issue price of the new securities should be determined. In the case of a new share issue, the weighted average price on the Nasdaq Vilnius and Warsaw Stock Exchanges over the last 3 months would be used to attract a strategic investor and a discount agreed with potential investors would be applied.
Should the option to issue convertible bonds be chosen, the price would be determined after negotiations with potential strategic investors, ensuring that the ratio at which the convertible bonds would be converted into shares of the company or the procedure for calculating it would be equivalent to that for a new share issue.
The top management of Novaturas proposes to offer new securities by withdrawing the right of pre-emption of the existing shareholders of the company and by granting the right to subscribe for and acquire the new securities to one or more potential strategic investors to be indicated at a later stage after negotiations with them have taken place.
In addition, Novaturas holds discussions with certain financial institutions regarding new credit facilities, but raising additional capital through a strategic investor or investors would allow the company to obtain the funds it needs for its operations from an alternative source. Overall, the issuance of new shares or convertible bonds to increase the share capital is viewed by the top management of Novaturas as the most favourable solution at this stage as it would provide flexibility in a highly dynamic and competitive market.
The company points out that the final decision on the issuance of new securities will depend on the decisions of the General Meeting of Shareholders. The meeting will be convened on 26 March 2025.
At the end of February, Novaturas presented its unaudited financial results for 2024. The annual net loss amounted to EUR 2.5 mln., but in the last quarter the company was profitable, recording a net profit of EUR 2.6 mln. This year, the company expects to achieve the EBITDA of EUR 3 mln. and the net profit of EUR 2 mln.
The shares of the company are currently traded on the Warsaw and Nasdaq Vilnius Stock Exchanges.
About the company
Novaturas Group is the only local charter tour operator in the Baltic States with more than 25 years of experience. The company offers summer and winter recreational, sightseeing, exotic, skiing, workation and group trips to many destinations worldwide. According to unaudited data, in 2024, Novaturas Group recorded revenues of EUR 201 mln. and served 239 thsnd. passengers in Lithuania, Latvia and Estonia.
For more information:
Darius Undzėnas
CFO
+370 678 05749
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