Latest update on dismantling the project, 300 million USD bond batch, plan to issue 1.7 billion shares

This afternoon (April 25), No Va – Novaland Real Estate Group (NVL) held the 2024 Annual General Meeting of Shareholders to approve important contents on business orientation and strategy in the coming time.

The total number of shareholders and authorized participants is 100, owning 1.05 billion shares (54.31%).

At the beginning of the Congress, the Chairman of the Board of Directors spoke a few words to shareholders, customers and partners:

“First of all, on behalf of Novaland Group, I would like to thank all of you for your presence.

In 2023, the macro economy has too many volatile factors. In that difficult context, with the sympathy of most Customers, Communities, Investors, Partners… and above all the Party’s direction along with the Government’s close direction; The difficulties of businesses and the economy have gradually been removed.

With internal strength and determination, along with support, Novaland Group is confident that it will overcome all obstacles so that the blue rubic cube continues to light up all provinces and cities.

Until today, Novaland has basically completed the restructuring of domestic and foreign debts and bonds, the Company’s assets are still in balance with its liabilities;

Most of the customers who have been with us during the past time have been satisfied and received good products and good profits.

Currently, the Group has limited revenue sources, we must prioritize maintaining continuous operations and continuing to complete projects and deliver products as committed. For the sake of responsibility and honor, the Group commits to focusing its best efforts on quickly overcoming arising incidents. The whole team worked hard day and night to overcome countless difficulties.

The entire Board of Directors and staff would like to thank you for your sympathy and sharing.”

At the Congress, Novaland submitted to shareholders for approval the 2024 business plan with 32,587 billion VND (about 1.3 billion USD) in revenue, 1,079 billion VND in profit after tax, an increase of 585% and 122% respectively compared to implementation. 2023.

Following the sharing of Chairman Bui Thanh Nhon, Director Dennis Ng Tech Yow updated Novaland’s current debt situation:

“We have proactively made agreements with funders to overcome and achieve restructuring results in 2023 as follows:

+ Compared to 2022, we have reduced debt by 11%, up to nearly 7,160 billion VND.

+ Reached an agreement on the Group’s proposal to restructure convertible bonds worth 300 million USD.

+ The total value of domestic bond principal payment extension reached more than VND 9,200 billion.

+ We also swapped bonds worth about VND 2,350 billion with equity in a project.

+ Finally, we successfully agreed with bondholders and contractors to swap to our products, with a total value of about VND 2,500 billion.

A typical example of our comprehensive restructuring is the restructuring of convertible bonds worth 300 million USD. In this agreement, we extended the maturity date and payment schedule with a conversion price 250% higher than the transaction price, the maturity date was moved to June 30, 2027.

This is a positive result for us and our shareholders and stakeholders in the current context.”

Regarding the capital increase plan, Novaland submitted to shareholders for approval a plan to offer 1.17 billion shares to existing shareholders at a price of 10,000 VND/share.

The expected offering time is in the second quarter of 2024, after the State Securities Commission issues the Certificate of registration for public stock offering according to regulations.

The total amount expected to be mobilized from the offering is more than 11,700 billion VND, NVL will use it to restructure debt, pay salaries to employees, contribute capital to subsidiaries, and develop projects.

In the Q&A section, answer the question “If Novagroup has repeatedly registered to sell NVL shares, will it have any impact on Novaland?” Will there be an escape or not?” Leaders shared that the reason for this is to support debt restructuring. Because of the sale, shareholders can see the attachment of the Chairman and his family to the survival of Novaland.

Regarding the question that for 2 consecutive years, the audit unit has assumed Novaland’s continuous operations, NVL leaders affirmed: “This is not an exception, the emphasis on continuous operations is only related to market uncertainty in the near future, potential instability.”.

Faced with concerns about whether the 10:6 stock issuance ratio would lead to dilution and reduce stock value, Mr. Duong Van Bac shared specifically about the stock price, reason, and purpose of issuance. . See details at: Novaland (NVL) shareholders are concerned that the issuance of 1.17 billion shares will affect the price, what does the management say?

>> Bondholders of the 7,000 billion bond batch agreed to exchange debt for NVL shares at a price 2.5 times the market price