Novaturas Group Pursues New Capital to Strengthen Operations
Novaturas Group Explores New Opportunities for Growth
In a strategic move to enhance its market position, Novaturas Group, a leading tour operator in the Baltic region, is preparing to raise capital through the issuance of new shares or convertible bonds. The company has identified the need for additional funding to boost its operations and strengthen its competitive stance across Lithuania, Latvia, and Estonia.
Aiming for Strategic Investors
With a goal to raise up to EUR 5 million, Novaturas sees this capital as crucial for advancing its business development and fortifying its financial position. The decision regarding this capital-raising initiative rests with the company’s General Meeting of Shareholders. Gediminas Almantas, the Chairman of the Board, emphasizes the importance of securing this funding to maintain the company's financial health and achieve broader strategic goals.
Importance of Additional Capital
Raising additional capital is essential in today's dynamic tourism market. Novaturas aims to enhance its services, ensuring sustainable growth and value creation for its shareholders. The management has analyzed various options and determined that issuing new shares or convertible bonds to potential strategic investors presents the highest potential for success.
Ongoing Negotiations with Investors
Currently, Novaturas' management is engaged in discussions with potential strategic investors concerning the issuance of new securities. Specific details regarding the investors or the type of securities to be offered remain undisclosed, but the company is making strides to conclude negotiations swiftly. They are also focused on finalizing necessary management decisions and formalities related to this capital-raising effort.
Determining Security Prices
As part of the capital raising process, Novaturas plans to propose methods for determining the issue price of new securities to the General Meeting of Shareholders. For a new share issuance, they intend to consider the weighted average price on stock exchanges over a preceding three-month period, potentially applying a discount for strategic investors.
Convertible Bonds Consideration
If the decision leans toward issuing convertible bonds, the pricing will be established post-negotiations, ensuring it correlates with the shares' issue value. This flexibility allows Novaturas to cater to the interests of strategic investors, maximizing its appeal in the competitive market.
Offering Options for New Securities
Novaturas proposes to offer these new securities by waiving existing shareholders' pre-emption rights, allowing potential strategic investors exclusive access. These offers will be clearly outlined once negotiations conclude.
Exploring Financial Facilities
In tandem with issuing new shares or convertible bonds, discussions are ongoing with financial institutions about securing additional credit facilities. However, tapping into strategic investors is viewed as a more favorable route for obtaining necessary operational funds.
Awaiting Shareholder Decisions
The final verdict regarding the issuance of new securities rests with the General Meeting of Shareholders, which will convene in the near future. The outcome of this meeting is critical to Novaturas' plans, marking a significant step in its growth trajectory.
Financial Performance Overview
Recently, Novaturas published its unaudited financial results for the year, revealing an annual net loss of EUR 2.5 million. Despite the challenges, the company experienced a profitable last quarter, with a net profit of EUR 2.6 million. Looking forward, Novaturas anticipates achieving an EBITDA of EUR 3 million and a net profit of EUR 2 million in the current year, reflecting the resilience of its operations.
About Novaturas Group
With over 25 years of experience, Novaturas Group is the only local charter tour operator in the Baltic States. They provide a wide range of travel services, including recreational, sightseeing, and specialized trips to diverse global destinations. In 2024, the company recorded revenues of EUR 201 million and served 239,000 passengers across Lithuania, Latvia, and Estonia.
For inquiries, please contact:
Darius Undz?nas
CFO
+370 678 05749
Frequently Asked Questions
What is Novaturas Group planning with the new shares?
Novaturas Group is aiming to raise up to EUR 5 million for business development and to enhance its competitive position in the tourism market.
How will the price for the new securities be determined?
The price for new shares will be based on the weighted average price on stock exchanges, with potential discounts for strategic investors.
Who will be approached for the new securities?
Negotiations are currently in progress with potential strategic investors; specific details about them will be disclosed after negotiations conclude.
What financial performance has Novaturas shown recently?
Novaturas reported a net loss of EUR 2.5 million for the year but experienced a net profit of EUR 2.6 million in the last quarter, showcasing recovery efforts.
How does Novaturas plan to strengthen its market position?
By issuing new shares or convertible bonds, Novaturas aims to raise necessary capital to improve services and ensure sustainable growth in a competitive tourism landscape.
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