Official Statement Regarding Information Circulated in the Public Space

LNM's Performance as a State Monopoly

Despite its status as a state monopoly, LNM recorded losses amounting to tens of millions of lei during 2018–2020 and was on the verge of bankruptcy in 2019. Therefore, regardless of the presence of a competitive environment, the Company requires professional management, as demonstrated by a comparison of its economic results up to 2020 with those from 2021 onwards, when a number of measures were initiated to correct the Company's activity.

During 2021–2025 (the period of Mr. Dermenji's tenure), sales revenue increased from MDL 4.46 billion to MDL 13.26 billion, net profit from MDL 105.6 million to MDL 290.7 million, and net assets from MDL 94.6 million to MDL 504 million. Over this period, the Company's contribution to the state budget amounted to approximately MDL 2.2 billion, including through the payment of dividends from the profit obtained.

The 2021 Competition

The competition for the position of General Director, held in 2021, was attended by candidates who had already been tested over time and had their own track record in managing the Company. Following the competition, Mr. Vadim Dermenji was declared the winner. The competition procedure was subject to judicial review, and on 22.09.2026 the Court of Appeal (second instance) confirmed that the competition had been conducted lawfully.

Extension of the General Director's Employment Relationship

The extension of Mr. Vadim Dermenji's employment relationship was neither a unilateral appointment nor an individual decision of the General Director. The individual employment contract concluded on 25.06.2021 provided for the possibility of its extension for a new term under the conditions set out in the contract. The proposal for extension was examined and approved by the Company's Board, and, as the State holds 100% of the share capital, the Public Property Agency, in its capacity as sole shareholder, expressed its consent on 27.04.2026. Subsequently, on 05.05.2026, an addendum was concluded for a period of 5 years. Furthermore, Law No. 1134/1997 on Joint-Stock Companies does not prohibit the extension of employment relationships.

Claims Regarding Referrals to Law Enforcement Authorities

The referrals to law enforcement authorities were made in connection with LNM's losses incurred prior to Mr. Dermenji's appointment and concerned the expenses for fitting out gaming halls under Public-Private Partnership Agreement No. 2/09 of 23.04.2018, concluded to develop LNM's activity in the sector of gaming machines with cash prizes, including via electronic communications networks. Such referrals in themselves do not amount to a finding of violations, the initiation of criminal proceedings, or the establishment of anyone's guilt.