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Resignation of JSC Olainfarm member of the Management Board

on October 1, 2019

JSC Olainfarm has received the letter of resignation from Veranika Dubitskaya whereby she steps down from her duties as a member of the Management Board as of 30 September 2019. JSC Olainfarm Management Board continues its work with five board members.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
Email: janis.dubrovskis@olainfarm.com

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Resignation of JSC Olainfarm member of the Management Board

In August revenues increased by 14%, strong growth in Latvia and Russia

on September 17, 2019

JSC Olainfarm preliminary consolidated results for August 2019 indicate that revenues increased by 14% compared to the same month last year and reach 10.5 million euro. At the same time consolidated results for the first eight months of 2019 show that revenues reached 86.4 million euro which is an increase by 9%, compared to the eight-month period of 2018. Rapid increase in Russia compensates drop in Belarus and Ukraine. Products of Olainfarm Group during this period were sold in 54 markets worldwide.

Consolidated sales in August show revenue increase in seven of the main markets. In Russia sales grew by 52% and by 10% in Latvia. Material change in sales were in Uzbekistan (+484%) and in Italy (+269%). Out of top 10 markets sales increased also in Kazakhstan and Tajikistan by 10% and 15%, respectively. Sales decreased in Belarus by 31% and in Ukraine by 43% but in the Netherlands by 66%.

In the eight months of 2019, the main sales markets of Olainfarm Group continued to contribute 78% of the total revenue – Latvia (29% share), Russia (28% share), Belarus (12% share) and Ukraine (8% share). Other major sales markets included Uzbekistan, Kazakhstan, the Netherlands, Germany, Tajikistan and Italy. The most rapid sales growth during this eight-month period was achieved in the Netherlands, where sales grew by 185% compared to the last year, and in Uzbekistan where sales grew by 42%. Sales in Latvia improved by 12%, in Russia by 8%, in Belarus by 5% but in Tajikistan by 27%. Amongst the largest sales outlets a decline was marked in Ukraine (-7%) and in Kazakhstan (-1%).

“August sales results continue to show a positive increase in the majority of sales markets. In August, similarly to July, sales in Latvia and Russia, as well as in other target markets, increased rapidly. As indicated, monthly sales results have had short-term fluctuations in certain markets, related to previously purchased volumes of the business partners and their planned sales,” says Lauris Macijevskis, the Chairman of JSC Olainfarm Management Board.

August 2019, consolidated sales       Sales, thous. EUR     Share in total sales    Changes to August 2018
Russia3 68435%52%
Latvia2 93328%10%
Belarus9219%-31%
Ukraine5535%-43%
Uzbekistan4114%484%
Italy3463%269%
Kazakhstan3203%10%
Germany2422%NA
Tajikistan1481%15%
Netherlands1151%-66%
Other8638%-5%
Total10 535100%14%

 

8 months 2019, consolidated sales     Sales, thous. EUR   Share in total sales    Changes to 8 months 2018
Latvia25 16329%12%
Russia24 13228%8%
Belarus10 73812%5%
Ukraine7 3138%-7%
Uzbekistan2 2463%42%
Kazakhstan2 1643%-1%
Netherlands1 7822%185%
Germany1 3772%13%
Tajikistan1 2061%27%
Italy1 0911%153%
Other9 18211%-2%
Total86 394100%9%

Unconsolidated sales – August and 8 months

According to preliminary unconsolidated figures, JSC Olainfarm sales reached 8 million euros in August, which represents an increase by 17% compared to August, 2018. Sale of products improved in Russia (+82%), Latvia (+3%), Uzbekistan (+484%), Italy (+269%) and Tajikistan (36%). At the same time revenues declined in Belarus by 46%, in Ukraine by 43%, Kazakhstan by 6% and in the Netherlands by 66%. Germany was also among the largest markets in August.

The unconsolidated sales results for the first eight months of 2019 show that JSC Olainfarm sales reached 65.4 million euros, which represents an increase by 8% compared to the first eight months of 2018. During this reporting period, sales have increased in eight out of the ten major markets of Olainfarm – Russia (+14%), Latvia (+2%), Belarus (+2%), Uzbekistan (+42%), the Netherlands (+185%), Germany (+13%), Tajikistan (+24%) and in Italy (+61%). Revenues declined by 6% in Ukraine and by 20% in Kazakhstan.

August 2019, unconsolidated sales    Sales, thous. EUR    Share in total sales    Changes to August 2018
Russia3 35242%82%
Latvia1 36317%3%
Belarus5988%-46%
Ukraine5487%-43%
Uzbekistan4115%484%
Italy3464%269%
Germany2413%NA
Kazakhstan2093%-6%
Tajikistan1482%36%
Netherlands1151%-66%
Other6278%-17%
Total7 958100%17%

 

Eight months 2019 unconsolidated sales    Sales, thous. EUR    Share in total sales    Changes to eight months 2018
Russia21 91434%14%
Latvia11 36717%2%
Belarus8 75113%2%
Ukraine7 19311%-6%
Uzbekistan2 2463%42%
The Netherlands1 7823%185%
Germany1 3662%13%
Kazakhstan1 1962%-20%
Tajikistan1 1532%24%
Italy1 0912%61%
Other7 34111%-6%
Total65 399100%8%

Results of subsidiaries – August and the first eight months of 2019

The pharmacy chain SIA Latvijas Aptieka sales reached 2 million euros in August 2019, which represents a 7% increase compared to August 2018. 68 pharmacies were operating during this period. SIA Silvanols sales reached 0.4 million euros in August 2019, representing a decline by 5% vs. August 2018. The combined sales of Tonus Elast and Elast Medical in August 2019 were 0.7 million euros, which is by 18% less than this time last year. Olainmed and Diamed Medical Center sales reached 0.25 million euros, while the Belarus subsidiary NPK Biotest reached 0.25 million euros in sales in August that is higher by 10% than in August last year.

During the first eight month period of 2019, SIA Latvijas Aptieka sales amounted to 17.0 million euros, demonstrating a 7% increase in comparison to the same time period last year, sales of SIA Silvanols reached 3.6 million euros which is 3% less than last year. The combined sales of Tonus Elast and Elast Medical during eight months this year totaled 6.3 million euros which is an increase by 1%. Medical Centers Diamed and Olainmed revenues were 2.1 million euros during the first eight months of this year and the Belarus company NPK Biotest sales were worth 2 million euros, improving the result of the last year by 32%.

August 2019    8 months 2019
Sales markets of Olainfarm3145
Sales markets of the Group3654
Number of pharmacies68
Sales of Latvijas Aptieka, thous. EUR2 00816 998
Sales of Medical centers, thous. EUR2512 052
Sales of NPK Biotest, thous. EUR2481 978
Sales of Tonus Elast and Elast Medical, thous. EUR7416 304
Sales of Silvanols, thous. EUR4033 572

According to the JSC Olainfarm budget, unconsolidated sales are planned to reach 99 million euros in 2019, while consolidated sales are expected at 133 million euros.  According to these preliminary sales figures, in the first eight months of 2019, 66% of annual target for unconsolidated sales and 65% of annual target for consolidated sales have been reached.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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In August revenues increased by 14%, strong growth in Latvia and Russia

JSC Olainfarm investments in subsidiary OlainMed Ltd reach EUR 300 thousand in 2019

on September 6, 2019

After evaluating the situation in OlainMed Ltd, JSC Olainfarm has decided to increase the planned amount of investments to EUR 300 thousand. The examination of the situation shows that the previous Board of OlainMed Ltd, acting in an inefficient and incompetent manner, failed to complete its tasks and did not provide an effective economic activity and financial control mechanism, leading the company to a difficult financial situation. Unable to provide successful operation of the company and failing to comply with the obligations of JSC Olainfarm, Board member Darja Cvetkova and Chairman of the Board Viktorija Zefirova-Tačinska resigned from their positions on the Board of the company.

To expeditiously implement the company’s future operations, in a short amount of time, JSC Olainfarm decided on a new Board of directors, electing Jēkabs Zīle to the Board of OlainMed Ltd. and keeping a position on the Board for Janis Klievēns. JSC Olainfarm plans to continue investing in the improvement of the range and quality of services provided by the company without reducing the number of medical staff. Currently, an exact financing plan is prepared, which will provide a higher level of investment in a shorter-term than previously planned. In order to stabilise the situation for the long-term, solutions are being sought out to reduce the company’s debt. Successful cooperation has emerged between JSC Olainfarm and the Municipality of Olaine, to provide high-quality medical services for all county residents.

 

Additional information:
External Communication Consultant
Ieva Lapiņa-Ennīte
tel. 29375689
Ieva.Lapina-Ennite@olainfarm.com

 

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JSC Olainfarm investments in subsidiary OlainMed Ltd reach EUR 300 thousand in 2019

Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”

on September 4, 2019

Management Board of the Joint Stock Company Olainfarm, unitary registration number: 40003007246, registered  address: Rupnicu iela 5, Olaine, LV-2114, announces that on August 23rd, 2019, request to convene an extraordinary general meeting of shareholders has been received from Andrejs Saveljevs who is authorized representative of shareholder Nika Saveljeva, representing 7,79% of the share capital of Joint Stock Company Olainfarm. Management Board of Joint Stock Copany Olainfarm based on the shareholder’s request in accordance with the article 270 of the Commercial law hereby convenes and announces that Extraordinary General Meeting of Shareholders of Joint Stock Company Olainfarm will be held on November 1st, 2019, at 14:00 at the  premises of JSC Olainfarm in Olaine, Rupnicu iela 5.

Agenda:

  1. Recall of the Council and Election of the new Council;
  2. Recall of the Auditing committee and election of the new Auditing committee;
  3. Amendments of Joint Stock Company Olainfarm Statutes.

Registration of the shareholders will take place on the day of the meeting, i.e. November 1st, 2019,  – from  13:00  until 13:45 on the venue.

The total number of shares and the total number of the voting shares of JSC „Olainfarm” is 14 085 078.

Date of the record for participation of the shareholders in the Extraordinary General Meeting of shareholders  of JSC „Olainfarm” is October 24th, 2019. Only those who are the shareholders at the date of record have the right to participate in the Extraordinary General Meeting of shareholders on November 1st, 2019, with the  number of shares held by them at the date of record.

Shareholders may participate in the General Meeting of shareholders either in person or  with a legal representative or represented through a proxy:

– When registering the shareholders must present either the passport or other  identification document;
– When registering the representatives or attorneys of the shareholders must present the passport or  other identification document, submit a written power of attorney by the represented shareholder (the  form of the power of attorney is available at JSC “Olainfarm” website http://www.olainfarm.com, website of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv; and website   of JSC  „NASDAQ Riga” http://www.nasdaqbaltic.com) or the legal representative has to present a document confirming the authority.

Shareholders have the following rights:

– shareholders that represent at least 1/20 of the capital of the company have the right within 7 days after the announcement is published to request the Management Board of JSC „Olainfarm”  to include additional items in the agenda. Shareholders that request inclusion of additional items in  the agenda of the Extraordinary General Meeting of shareholders must submit to the Management Board of JSC  „Olainfarm” draft decisions about the issues to be included in the agenda upon their request or  explanations about the item, if no decision is planned;

– within 7 days after the publishing of this announcement, submit draft decisions about the items of agenda.  Should all submitted draft decisions be reviewed and declined, shareholders may  submit their proposed draft decisions during the Extraordinary General Meeting of Shareholders itself;

– should the shareholder submit an inquiry at least 7 days before the Extraordinary General  Meeting of shareholders, the Management Board shall at least 3 days before the Extraordinary General Meeting  of shareholders provide the requested information about the items included in the agenda.

Shareholders may see the draft resolutions of the Extraordinary general Meeting of Shareholders from October 17th, 2019, on the web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com , but on the day of the Extraordinary General Meeting – at the venue.

The  form of the power of attorney is available at web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com.

In Olaine, on September 04th,2019
Management Board of Joint Stock Company “Olainfarm”

Attachments:
Power of Attorney
Amendments of the Statutes
Draft Decisions

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
E-mail: janis.dubrovskis@olainfarm.com

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Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”

Notice on additional agenda items for Extraordinary General Meeting of shareholders of Joint Stock Company Olainfarm to be held on November 1th, 2019 at 11:00

on September 4, 2019

Joint Stock Company Olainfarm (unitary registration No. 40003007246, legal address: Rupnicu street 5, Olaine, LV-2114) Management Board hereby informs, that the following additional items is included in the agenda of Extraordinary General Meeting of shareholders of Joint Stock Company Olainfarm to be held on November 1st, 2019 at 11.00:

Bringing an Action against members of the Management Board of Joint Stock Company “Olainfarm”;

Bringing an Action against members of the Council of Joint Stock Company “Olainfarm”.

An additional item is included upon request of the Joint Stock Company Olainfarm shareholder Anna Emilija Maligina, that represents 7,79% of the Joint Stock Company Olainfarm share capital, using  the rights provided by part 2 of the article 274 of the Commercial law of the Republic of Latvia.

In Olaine, on September 04, 2019

Management board of the Joint Stock Company Olainfarm

 

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
E-mail: janis.dubrovskis@olainfarm.com

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Notice on additional agenda items for Extraordinary General Meeting of shareholders of Joint Stock Company Olainfarm to be held on November 1th, 2019 at 11:00

Olainfarm Group’s financial performance in the first half reached new highs – sales were 66.4 million EUR; net profit jumps to 12.2 million EUR

on August 30, 2019
  • Group sales in the first half 2019 were 66.4 million EUR, which is 7% higher than a year earlier
  • EBITDA margin for the first six month 2019 was 26%, up from 17% year ago
  • Strong liquidity and decrease in leverage support further investment needs

“Looking at the six months of Olainfarm’s financial year and its good financial position, three things should be noted: 1) the high profitability of the company; 2) a significant increase in the company’s liquidity to historically high levels; and 3) active negotiations with banks and to provide new loans. These are also key factors that provide a solid foundation for a new development stage for organising drug dossiers and conducting clinical trials for medicines,” says Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.

During the 2nd quarter of 2019, consolidated sales of the Olainfarm Group reached 31 647 thousand EUR which is an increase by 592 thousand EUR euros or 2% if compared to similar period of 2018. In the 2nd quarter EBITDA was 6 422 thousand EUR that surpassed the figure of the 2nd quarter of 2018 by 1 497 thousand EUR or 30%. Profit for this year’s second quarter was 3 984 thousand EUR, which is an increase by 49% or 1 312 thousand EUR in comparison with the second quarter of 2018.

During the first six months of this year Group’s sales reached 66 392 thousand EUR, which is an increase by 7% or 4 548 thousand EUR comparing to the same period of 2018. Group’s EBITDA during this year’s first six months was 16 928 thousand EUR, which is by 64% or 6 589 thousand EUR more than the half year results of the last year. Group’s reporting period profit for the six month 2019 was 12 244 thousand EUR and it increased by 112% or 6 458 thousand EUR in comparison with half year of 2018. Half-year 2019 sales, EBITDA and net profit mark new record levels for the first six months period.

Reporting period profit was positively influenced by gross margin increase, selling expense decrease, income from currency rate fluctuations but negatively impacted by increase of administrative expenses. Administrative expenses rose due to investments in medicine registration dossiers and such costs may not always be possible to capitalize as well as with review of salaries and bonus payments to personnel (excluding the Supervisory Council and the Management Board).

In accordance with the approved plans for 2019 Group’s sales target is fulfilled by 50% and profit figure by 96%.

During the first six months of this year sales volumes of the main Olainfarm products continued to increase. The share of the leading product Noofen is 19%, which is by one percentage point more than a year before. The share of the three largest products (Noofen, Neiromidin and Furamag/Furasol) comprise 52% that is by one percentage point higher than a year before (51%).

In April this year JSC Olainfarm signed agreement with a unit of UN (UN Office for Project Services) about deliveries of PASS in the amount of 3 million EUR during 2019-2020, which will keep this medicine among top products also in the future.

Group introduced two new alternative performance indicators – Net debt to EBITDA ratio and Debt – Service Coverage Ratio (DSCR). Net debt to EBITDA improved from 1.4 to 0.6 and DSCR from 1.8 to 2.5.

The first half of 2019 was also significant due to rapid improvements in cash position from 2 689 thousand EUR at the beginning of the year to 10 623 thousand EUR, which allows to continue investments in updating medicine dossiers in the coming years.

During the second quarter of 2019, more than 731 thousand shares of JSC Olainfarm, with total value of 4.5 million euros, were traded on Nasdaq Riga. Compared to the same period in 2018, the number of traded shares was by 726% more, while traded value was higher by 511%.

Consolidated statement of comprehensive incomeGroupGroup
Q2 2019Q2 2018M6 2019M6 2018
EUR ‘000  EUR ‘000  EUR ‘000  EUR ‘000  
Revenue  31 647  31 055  66 392  61 844
Cost of goods sold  (11 818)  (12 117)  (25 309)  (24 895)
Gross Profit  19 829  18 938  41 083  36 949
Selling expense       (8 740)  (9 510)     (17 021)  (18 181)
Administrative expense       (7 299)  (5 790)     (13 632)  (11 431)
Other operating income  672  687  1 134  1 405
Other operating expense          (449)  (1 093)          (704)  (1 804)
Share of profit of an associate  25  7  103  75
Financial income  279  19  1 842  39
Financial expense          (327)  (501)  (488)  (1 091)
Profit Before Tax  3 990  2 757  12 317  5 961
Corporate income tax              (5)  (87)            (72)  (177)
Deferred corporate income tax  (1)  2  (1)  2
PROFIT FOR THE REPORTING PERIOD  3 984  2 672  12 244  5 786
Other comprehensive income for the reporting period  62  41  217  36
Total comprehensive income for the reporting period  4 046  2 713  12 461  5 822
Total comprehensive income attributable to:
The equity holders of the Parent Company  4 046  2 713  12 461  5 822
Non-controlling interests  –  –  –  –
Basic and diluted earnings per share, EUR  0.28  0.19  0.87  0.41

 

Condensed Consolidated Statement of  Financial PositionGroup
30.06.2019  31.12.2018  
EUR ‘000EUR ‘000
  ASSETS
NON-CURRENT ASSETS
Intangible assets  36 388  36 619
Property, plant and equipment  44 832  43 697
Right-of-use assets  7 230  –
Investment properties  3 510  3 492
Other non-current assets  868  983
TOTAL NON-CURRENT ASSETS  92 828  84 791
CURRENT ASSETS
Inventories  29 744  25 794
Receivables  29 785  34 637
Cash  10 623  2 689
TOTAL CURRENT ASSETS  70 152  63 120
TOTAL ASSETS  162 980  147 911
  EQUITY AND LIABILITIES
EQUITY
Share capital  19 719  19 719
Share premium  2 504  2 504
Reserves  (7)  (224)
Retained earnings  93 914  83 079
TOTAL EQUITY  116 130  105 078
LIABILITIES
Non-current liabilities
Borrowings and lease liabilities  6 590  1 793
Deferred income  3 418  2 878
Total Non-Current Liabilities  10 008  4 671
Current liabilities
Borrowings and lease liabilities  19 015  23 236
Trade payables and other liabilities  16 047  14 540
Dividends payable  1 409  –
Deferred income  371  386
Total Current Liabilities  36 842  38 162
TOTAL LIABILITIES  46 850  42 833
TOTAL EQUITY AND LIABILITIES  162 980  147 911

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top -quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
E-mail: janis.dubrovskis@olainfarm.com

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Olainfarm Group’s financial performance in the first half reached new highs – sales were 66.4 million EUR; net profit jumps to 12.2 million EUR

Olainfarm invites to Second Quarter 2019 Investor Conference Webinar

on August 29, 2019

JSC Olainfarm invites shareholders, investors, mass media representatives and other stakeholders to join its investor conference webinar scheduled on September 3, 2019 at 16:00 (EEST). To join the webinar please follow the instructions below.

Webinar will be hosted by the Chairman of Management Board Lauris Macijevskis and Investor Relations Advisor Janis Dubrovskis. The presentation will be held in English.

During the webinar JSC Olainfarm representatives will inform about the recent performance of the company and financial results of second quarter and 6 months of 2019.

After the presentation investors are welcome to ask questions. Due to the limited webinar time please send in your questions in advance to e-mail: ieva.unda@nasdaq.com.

What is a webinar?
Webinar is a virtual conference, during which company’s representative gives information about the company, its activities and future plans. Webinar allows interactive communication and provides an opportunity to ask questions and get answers directly from the company.

How to join the webinar?
All you need is a computer with internet connection and headphones.

To join the webinar, we invite you to register via https://attendee.gotowebinar.com/register/2377739375908929537.

You will be provided with the webinar link and instructions to join webinar successfully. When joining the webinar for the first time, you will be asked to download the system application on your computer which will take only few seconds.

For more information on webinar service please visit: https://nasdaqbaltic.com/en/our-services/webinars/.

Join the webinar and be the first one to hear the new!

 

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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Olainfarm invites to Second Quarter 2019 Investor Conference Webinar

The Management Board of JSC Olainfarm prevents fraudulent use of the company’s assets

on August 27, 2019
  • Large-scale possibly fraudulent activity suspected in the use of the company’s assets by former executives of JSC Olainfarm
  • Criminal proceedings have been initiated by the police
  • Suspicious transactions occurred between 2 January, 2017 and 4 April, 2019

In April of this year, following a request from the person directing the criminal proceedings, JSC Olainfarm recruited an independent, international auditor to investigate the economic activity of the former senior management and the payment for marketing services to a company in Cyprus. The conclusion received from the international auditor confirms that the transaction occurred, possibly causing losses to JSC Olainfarm. The existing Management Board of JSC Olainfarm has turned to the State Police with a request to declare the company a victim in the previously initiated criminal proceedings.

In April of 2019, when starting to act on their duties, the Board of JSC Olainfarm, became acquainted with the economic activities of the company and the previously signed contracts. The new Management Board identified transactions regarding marketing outsourcing services which raised doubts about their potential fictitious nature, economic validity and legitimacy. In addition, the amount of the contract did not match the amount of services received and the marketing activities were lacking supporting documentation, so initially cooperation with the company was temporarily terminated, at this moment, it has been completely suspended and the situation has been reported to the law enforcement agencies.

Following the instructions of law enforcement agencies, JSC Olainfarm actively cooperated with the international auditing company in order to help it gain an in-depth understanding of the marketing services purchased and to eliminate any shadow of a doubt. The auditor’s report, received in August 2019, indicates that an in-depth analysis confirmed – as a result of this transaction, potentially significant losses were caused to JSC “Olainfarm”.

The report of the international auditor has identified people involved in the transaction. Several officials and senior executives of JSC Olainfarm, who were related to the transactions have been previously suspended from performing their duties.

The practice used was incompatible with the principles of good governance and it has been terminated immediately. We are aware that these findings are unpleasant for everyone – the employees, investors and shareholders, however, we believe that as diligent and careful managers we must speak openly about the past events. We have nearly 1500 shareholders, and in the interest of all our shareholders, we aim to provide transparency in our economic activities as well as mitigate such risks in the future,” points out Lauris Macijevskis, the Chairman of the Board of JSC Olainfarm.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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The Management Board of JSC Olainfarm prevents fraudulent use of the company’s assets

JSC Olainfarm refinances its liabilities and receives financing for development projects

on August 22, 2019

JSC Olainfarm and financial partner the bank BlueOrange have agreed to refinance existing liabilities on improved terms, provide additional financing for the company’s development projects and planned investment in fixed assets. The deal is a statement of trust for the company’s development and future perspective.

“We are proud of our accomplishments and positive impact on the company in the long run! We appreciate the involvement of BlueOrange, taking over the company’s historical liabilities with ABLV Bank and contributing further to the company’s development and modernization. The support will enable us to strengthen the money flow enhancing the trust of investors and business partners,” notes Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.

The total loan will amount to EUR 10.5 million over five years, of which nearly  nine million will be redirected for historical liabilities and the remainder will be invested in the company’s fixed assets as well as development through the upgrading of JSC Olainfarm cooling station and its engineering system to reduce greenhouse gas emissions. This project is implemented with co-funding from the European Union structural funds.

“We are pleased to be able to drive growth and provide support for one of the largest companies in Latvia. Lending to local entrepreneurs promotes business development, secures jobs, promotes the development of the national economy as a whole, we consider this our priority,” notes Dmitrijs Latisevs, CEO of BlueOrange.

According to the JSC Olainfarm budget, unconsolidated sales are planned to reach 99 million euros in 2019, while consolidated sales are expected at 133 million euros. According to preliminary sales figures, in the first 7 months of 2019, 58% of annual target for unconsolidated sales and 57% of annual target for consolidated sales have been reached.

JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top-quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

read more
JSC Olainfarm refinances its liabilities and receives financing for development projects

Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”

on August 15, 2019

Management Board of the Joint Stock Company Olainfarm (JSC Olainfarm), unitary registration number. 40003007246, registered  address: Rupnicu iela 5, Olaine, LV-2114, announces that on August 2nd, 2019, request to convene an extraordinary general meeting of shareholders has been received from shareholder limited liability company “OLMAFARM”, representing 42,56% of the share capital of Joint Stock Company Olainfarm. Management Board of Joint Stock Copany Olainfarm based on the shareholder’s request in accordance with the article 270 of the Commercial law hereby convenes and announces that Extraordinary General Meeting of Shareholders of Joint Stock Company Olainfarm will be held on November 1st, 2019, at 11:00 at the  premises of JSC Olainfarm in Olaine, Rupnicu iela 5.

Agenda:

  1. Recall of the Council and Election of the new Council;
  2. Recall of the Auditing committee and election of the new Auditing committee.

Draft decisions has not been added by the shareholder limited liability company “OLMAFARM” to request on convene an extraordinary general meeting of shareholders.

Registration of the shareholders will take place on the day of the meeting, i.e. November 1st, 2019,  – from  10:00  until 10:45 on the venue.

The total number of shares and the total number of the voting shares of JSC „Olainfarm” is 14 085 078.

Date of the record for participation of the shareholders in the Extraordinary General Meeting of shareholders  of JSC „Olainfarm” is October 24th, 2019. Only those who are the shareholders at the date of record have the right to participate in the Extraordinary General Meeting of shareholders on November 1st, 2019, with the  number of shares held by them at the date of record.

Shareholders may participate in the General Meeting of shareholders either in person or  with a legal representative or represented through a proxy:
– When registering the shareholders must present either the passport or other  identification document;
– When registering the representatives or attorneys of the shareholders must present the passport or  other identification document, submit a written power of attorney by the represented shareholder (the  form of the power of attorney is available at JSC “Olainfarm” website http://www.olainfarm.com, website of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv; and website   of JSC  „NASDAQ Riga” http://www.nasdaqbaltic.com) or the legal representative has to present a document confirming the authority.

Shareholders have the following rights:
– shareholders that represent at least 1/20 of the capital of the company have the right within 7 days after the announcement is published to request the Management Board of JSC „Olainfarm”  to include additional items in the agenda. Shareholders that request inclusion of additional items in  the agenda of the Extraordinary General Meeting of shareholders must submit to the Management Board of JSC  „Olainfarm” draft decisions about the issues to be included in the agenda upon their request or  explanations about the item, if no decision is planned;
– within 7 days after the publishing of this announcement, submit draft decisions about the items of agenda.  Should all submitted draft decisions be reviewed and declined, shareholders may  submit their proposed draft decisions during the Extraordinary General Meeting of Shareholders itself;
– should the shareholder submit an inquiry at least 7 days before the Extraordinary General  Meeting of shareholders, the Management Board shall at least 3 days before the Extraordinary General Meeting  of shareholders provide the requested information about the items included in the agenda.

Shareholders may see the draft resolutions of the Extraordinary general Meeting of Shareholders from October 17th, 2019, on the web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com , but on the day of the Extraordinary General Meeting – at the venue.

The  form of the power of attorney is available at web  page of JSC „Olainfarm”  http://www.olainfarm.com, web-page of the system of Official Central Storage System of Regulated Information http://www.csri.investinfo.lv and the web page of JSC „NASDAQ Riga” http://www.nasdaqbaltic.com.

In Olaine, on August 15th,2019

Management Board of Joint Stock Company “Olainfarm”

Additional information please find in company announcement at Nasdaq Baltic.

Additional information:
Jānis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com

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Announcement About Convening of the Extraordinary General Meeting of Shareholders of Joint Stock Company “Olainfarm”