Novaturas' RGM: A Crucible for Value Creation Through Strategic Shareholder Engagement

As Novaturas prepares for its Ordinary General Meeting (OGM) on July 1, 2025, shareholders face a pivotal moment to shape the company's trajectory. The meeting's agenda—spanning profit distribution, board elections, audit firm selection, and remuneration policies—offers a rare opportunity to align voting decisions with long-term value creation. With the company emerging stronger after securing critical liquidity and strategic partnerships, the stakes for informed shareholder engagement have never been higher.

Profit Distribution: Balancing Immediate Returns and Growth

The proposed profit distribution plan will test shareholders' priorities. Novaturas reported a €2.6 million profit in Q4 2024, bolstered by a €1 million loan secured in May 2025 and a €9M surety insurance agreement with Euroins AD. While distributing profits could boost short-term shareholder returns, retaining earnings could fund growth initiatives like the recent 33% stake acquisition interest from a strategic investor and the 23.2% share sale to Turkish businessman N. Kockar.

Investors should scrutinize management's proposed allocation. Retaining capital to fuel expansion aligns with the company's push into new markets and partnerships. A vote to prioritize reinvestment over dividends could unlock disproportionate long-term value, especially if the company's 2024 audited results, finalized in June 2025, reflect robust fundamentals.

Board Elections: Choosing a Visionary Leadership Team

The election of the Board of Directors is perhaps the most consequential item. With 7,751,003 voting shares at stake, directors' strategic vision will determine whether Novaturas capitalizes on its financial resilience or squanders momentum.

Recent moves—like the €2.5 million credit line in January 2025 and the Turkish partnership—suggest a focus on geographic diversification and capital growth. Shareholders should favor candidates with expertise in scaling operations and securing strategic alliances. A board overly focused on cost-cutting or short-term gains could undermine the company's upward trajectory.

Audit Firm Selection: Trust and Transparency in an Era of Scrutiny

Choosing an audit firm demands rigor. The June 2025 publication of audited 2024 results restored transparency after earlier corrections to the investor calendar and reporting timelines. A credible auditor will be critical to maintaining investor confidence, especially as Novaturas navigates complex financial moves like its EUR 1 million loan and insurance agreements.

Shareholders should demand a firm with a track record of handling companies in similar growth phases, ensuring that financial statements reflect true value. A weak audit partner could invite skepticism about the company's health, stifling future funding opportunities.

Remuneration Policies: Aligning Incentives with Long-Term Goals

Executive compensation structures must tie pay to metrics that drive sustainable growth, not just quarterly results. If remuneration policies emphasize short-term profit targets, management may prioritize dividends or cost cuts at the expense of reinvestment. Conversely, performance-based incentives linked to market share gains or ESG goals could incentivize decisions that build lasting value.

The Case for Strategic Voting: Why This RGM Matters

Novaturas' recent financial resilience—bolstered by multiple liquidity injections and strategic equity partnerships—positions it to capitalize on emerging opportunities. Shareholders who vote to retain profits, elect growth-oriented directors, select a reputable auditor, and demand performance-linked compensation will be betting on a company primed for expansion.

Investment Implications

For investors holding Novaturas shares ahead of the OGM, the message is clear: participate actively. Voting in favor of reinvestment, visionary leadership, and rigorous governance could amplify returns as the company scales. Passive shareholders risk missing out on a defining moment for the firm's future.

Final Take

The July 1 OGM is more than a routine meeting—it's a crossroads for Novaturas. Shareholders who engage strategically can ensure the company's decisions align with long-term value creation. With financial stability secured and growth avenues open, this is a rare chance to lock in gains by voting with foresight.

For further details, review the draft decisions and financial statements at www.novaturasgroup.com, or contact CFO Darius Undzenas at +370 678 05749.