An agricultural cooperative „Agrobokštai“, indirectly controlled by one of the largest organic food production groups in the Baltics, „Auga Group“, did not redeem its EUR 6 million bonds on time after the refinancing process was delayed.

The group had until 28 October to redeem the securities issued on 27 March last year and to pay interest on them, but refinancing has been delayed, the „Auga Group“ said on Tuesday via the „Nasdaq“ Vilnius Stock Exchange.

„We have made every effort to redeem the overdue private placement and we have fulfilled our obligation to pay interest to investors in a timely and orderly manner. We are currently continuing to work actively on the redemption of the bonds," Kęstutis Juščius, Chairman of the Group's Board of Directors, said in a statement.

He did not comment to BNS on when „Agrobokštai“ intends to redeem the bonds.

„The listed company („Auga Group“ – BNS), as much as we could, we reported. We cannot comment further,– K. Juščius told BNS.

He said the company understands investors' concerns and is working to resolve the situation as soon as possible.

According to the data of the Centre of Registers, „Agrobokštai“ in 2023 incurred a net loss of EUR 0.21 million and generated revenues of EUR 8.74 million.

The company's cash flow statement shows that the cooperative borrowed €7.25 million last year: in addition to the bonds issued, it was granted a loan of €1.25 million. Last year, the company also paid EUR 0.415 million in interest. The company did not pay dividends for the previous year.

According to the Centre of Registers, „Auga group“ owns 99.6% of „Agroboksti“ shares. 

After a delay in the refinancing process, „Auga group“, one of the largest organic food production groups in the Baltics, did not redeem the €6 million bond of „Agrobokštai“, an agricultural cooperative it indirectly controls, on time.