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Signing a letter of intent

Signing a letter of intent

Date of publication: 15.07.2022

The Management Board of PROCHEM S.A. with its registered office in Warsaw (hereinafter referred to as the “Issuer”), with reference to the Current Report No. 15/2019 of November 6, 2019, informs that on July 15, 2022, the Issuer concluded with FOOSUNG POLAND Sp. z o. o. based in Katowice, a contract for design works and for acting in the capacity of the Management Contracting (GRI) for the construction of a plant producing components used in the construction of lithium-ion batteries for electric cars in Kędzierzyn-Koźle (hereinafter referred to as the “Investment”).

The formula of the remuneration for performing the works in the scope of GRI/ Management Contracting (in addition to the remuneration for design services) includes a margin and coverage of the costs of the subject of the contract, hence the Issuer’s remuneration only after final settlement of the costs incurred will be determinable.

The Issuer anticipates that it will amount to over EUR 100,000,000.00 (one hundred million).

The expected period of the investment implementation – the years 2022-2024.

The contract provides the possibility of withdrawal from the implementation of the investment by FOOSUNG POLAND sp. z o.o. after the preparation of the investment budget, if the investment implementation budget exceeds the investor’s business assumptions.

The Issuer’s liability has been contractually limited:

– in the case of claims for the provision of design services – up to the amount of PLN 19.8 million;
– in the case of claims for other services provided under the contract – up to the amount of approx. PLN 22 million.

The Management Board of the Issuer’s company decided that the above information meets the criteria for confidential information specified in Art. 7 paragraph 1, 2 and 4 of MAR due to the value of the contract.