Logofătu brothers request Bittent shareholders' approval for bond issuance worth 200 million lei

• The founders of Bittnet also propose that the company's director be mandated to find investors or creditors for the companies in the group, including through the full sale of some companies

Brothers Mihai and Cristian Logofătu, founders of integrated IT solutions provider Bittnet Systems (BNET), request the addition of a series of items to the agenda of the shareholders' meeting on October 21, including the approval of the launch of two bond issuance programs, totaling about 200 million lei, according to the company's report, published yesterday on the Bucharest Stock Exchange (BVB) website.

One program aims to issue non-convertible corporate bonds, with a total value of up to one hundred million lei, the securities to be launched at a nominal value of 100 lei per unit, with a maturity of between three and five years, with an annual interest rate to be fixed or variable, up to 12%. The bonds will be offered to investors through a private placement or a public offering. "The bond issue may be carried out depending on market conditions and the company's financing needs, within a single bond issue or through several issues, within an offering program,” the BVB report states.

The other program aims to launch bonds with a total value of 20 million euros, at a nominal value of 100 euros per unit, with a maturity of between three and five years and an annual interest rate, fixed or variable, of up to 12%. The board will be empowered to carry out all operations necessary for the bond issue by December 2030, including the listing of the securities on the Bucharest Stock Exchange.

Currently, Bittnet Systems has five bond issues listed on the Bucharest Stock Exchange.

The Logofătu brothers also request approval of the mandate of the company's general manager to identify strategic partners for the companies in the group, both in the form of creditors and in the form of participants in the capital of Bittnet Systems' subsidiaries, respectively attracting partners that would allow the development of the companies in which Bittnet has holdings, independent of financing from Bittnet. "In order to fulfill this mandate, the CEO is authorized to offer minority or majority stakes, obtained by investors through purchases from Bittnet and/or through capital increases in subsidiaries, the percentages offered being at the discretion of the CEO, including the full sale, within the limits of article 90, paragraph (1), of Law no. 24/2017," the report states.

According to the aforementioned article of the law, transactions exceeding 20% of a company's fixed assets require the approval of shareholders.

Another request of the founders of Bittnet Systems is to reduce the number of members of the company's Board of Directors from five to three, as well as to elect a new board member, following the requests to resign from their mandates made by some administrators. Mihai and Cristian Logofătu together hold 17.7% of Bittnet's subscribed and paid-up share capital.

For the first half of the year, the company recorded consolidated revenues of 103.9 million lei, down 38% compared to the same period in 2024. The gross margin followed the same trend, reaching 19.5 million lei, 38% lower compared to the first half of last year, but the continuous increase in the share of services in turnover generated the maintenance of the gross margin at the level of 19%. Consolidated EBITDA was a loss of 7.1 million lei, compared to a positive result of 7.8 million lei in the first half of 2024. The operating result was negative, of - 12.3 million lei, compared to an operating profit of almost three million lei in the similar period last year. For the first half of the year, Bittnet Systems recorded a loss of 17 million lei, compared to a negative result of 4.5 million lei in the same period last year. The issuer's stock market valuation currently stands at 75 million lei.