Pharmaceutical company AS “Olainfarm“At the extraordinary shareholders ‘meeting on September 22, at the suggestion of shareholder Nika Saveļjeva, it will also be decided to limit the powers of several members of the Board,” the company’s announcement to Nasdaq Rīga on the draft resolutions of the shareholders’ meeting shows.
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Saveljeva calls for changes to Olainfarm’s articles of association, stipulating that the chairman of the company’s board represents the company separately, but the other members of the board have the right to represent the company together with at least two other members of the board.
Currently, the company’s board has seven board members, of whom both the chairman of the board Jerūnas Veitsas and the board members Milana Beļevičs, Elena Bušberga and Zane Kotāne have the right to represent the company separately, according to “Firmas.lv” data.
Mārtiņš Pūriņs, Raimonds Terentjevs and Signe Baldere-Sildedze, who have the right to represent the company together with two other members of the Board, also currently serve on the Board.
It is also planned to decide on the replacement of the company’s council at the shareholders’ meeting, although potential candidates for council members are not mentioned. This issue is also included in the agenda of the meeting at the suggestion of Olainfarm shareholder Saveļjeva. She represents 7.79% of the share capital of Olainfarm and has made this request using the rights of Section 274, Paragraph two of the Commercial Law.
At the suggestion of Saveljeva, it will also be decided to amend Olainfarm’s articles of association, conduct an internal audit and recall the audit committee and elect a new audit committee.
At the request of Olainfarm shareholder Olfim OÜ, it is planned to decide on the same issues – replacement of the Supervisory Board and the Audit Committee – on September 22 at 3 pm at the extraordinary shareholders’ meeting of the company.
In its report, the Supervisory Board of Olainfarm notes that the current members of the Supervisory Board were elected on April 1, 2019, thus the Supervisory Board has been in this composition for nine months in 2019. According to the Council, all the company’s performance indicators were better than in 2018. The total revenue of the group in 2019 reached 137 million euros, which was 10% more than in 2018. Gross profit was 85 million euros, an increase of 10 million euros. Gross profit margin increased from 60% in 2018 to 62% in 2019.
As reported, the shareholders at the meeting will consider the possibility of filing a lawsuit against the former board for several million losses to the company. An audit by Olainfarm found that former Olainfarm officials had entered into a transaction with Banestar Management Limited, a company incorporated in Cyprus, on behalf of the company in early 2017, which had resulted in a loss of several million euros for Olainfarm. The suspicious transactions took place from 2 January 2017 to 4 April 2019. Olainfarm was reported to the State Police.
Olainfarm does not disclose which former board members are against.
The audited turnover of the Olainfarm Group in 2019 was 137.219 million euros, which is 10.4% more than a year earlier, but the group’s profit increased 2.2 times and amounted to 23.628 million euros. At the same time, Olainfarm’s own turnover last year was 104.363 million euros, which is an increase of 12.2% compared to 2018, but the company’s profit increased 2.5 times and reached 22.239 million euros.
In the first half of this year, the Olainfarm Group had a turnover of 66.369 million euros, which is 0.1% less than in the first half of 2019, while the group’s profit was 10.017 million euros, which is 18% less than in the first half of 2019. , the company said in a statement to Nasdaq Riga.
Olainfarm manufactures finished dosage forms, pharmaceuticals and food supplements, as well as chemicals and active pharmaceutical ingredients. The largest shareholder of Olainfarm is Olmafarm (42.56%), which is owned in equal shares by the heirs of Valery Maligin – Irina Maligina, Anna Emilia Maligina and Nika Saveljeva. Olainfarm shares are listed on the official list of Nasdaq Riga.
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