Holde Agri Invest receives a three million lei loan from SevenX Ventures

SevenX Ventures, an investment vehicle controlled by Iulian Cîrciumaru, has lent Holde Agri Invest three million lei, according to a report by the agricultural land operator in our country, published on the website of the Bucharest Stock Exchange (BVB).

The loan is subordinated and matures on November 11, 2027, has a fixed interest rate of 10%, and Holde Agri Invest has the possibility of converting it into shares in the context of a possible share capital increase. "The loan was granted to the company to support its current needs and ensure the necessary working capital in the coming period," the report posted on the BVB states.

Last month, SevenX Ventures and Vertical Seven Group lent Holde Agri Invest 1.5 million lei and 0.5 million lei, respectively, to support the company's current needs and ensure the necessary working capital, with maturities in 2027.

Holde is in the process of recovering the group's activity to ensure its positive evolution in the long term, according to an October announcement by the company.

"The measures are required after the major difficulties encountered in the last two years, in which agricultural companies in Romania, including Holde Agri Invest, faced a series of overlapping crises, which led to significant losses and decapitalization. Among the main challenges were the explosive increase in fertilizer prices in 2022, followed by the decrease in agricultural product prices in 2023, which did not cover production costs. In 2024, the drought that affected southern Romania also hit the five cores of Holde Agri Invest hard, which further worsened the group's situation," the company announced last month.

According to the press release, given the difficult context, in the medium term, Holde Agri Invest's priority is to stabilize the financial situation and consolidate the business and only then resume expansion and development plans. A series of changes have recently taken place in the management of Holde Agri Invest.

General Manager Liviu Zagan was replaced, and in his place was temporarily appointed Deputy General Manager Bogdan Serghiescu, who was Financial Director. Subsequently, Bogdan Serghiescu gave up the position of Financial Director, and in his place was appointed Bogdan Lungu, an executive with 24 years of experience in the financial and operational fields, according to the company.

For the first six months of the year, Holde Agri Invest recorded a loss of 12.2 million lei, 40% higher than in the first half of last year, even though operating income increased by 12%, to 62 million lei. The company will publish its third-quarter results on November 28.

At mid-year, the funds Sevenx Ventures and Vertical Seven Group - a vehicle controlled by Iulian Cîrciumaru and Andrei Creţu - held 13.7% and 11.1% of Holde Agri Invest, respectively, a company whose current valuation amounts to about 60 million lei.