Conclusion of a preliminary contract by a jointly-controlled entity

Date of publication: 01.03.2022

The Management Board of PROCHEM S.A. with its seat in Warsaw (hereinafter referred to as the “Issuer”), informs that on February 28, 2022 a jointly-controlled entity of the Issuer – Irydion Sp. z o. o. with its seat in Warsaw, concluded a preliminary contract of sale of real estate owned by Irydion Sp. z o. o. a plot of land located in Warsaw, at ul. Łopuszańska 95 with the Astrum Business Park office complex, parking lot and infrastructure located on this property (hereinafter referred to as the “Property”).

The sale price of the Property in the final contract will be determined on the date of the final contract, taking into account the status of settlements with tenants of Astrum Business Park.

The sale price of the Property will not be less than EUR 43.5 million net and not more than EUR 43.9 million net, and will be increased by VAT at the applicable rate.

The date of signing the final contract depends on obtaining a tax interpretation confirming the method of taxation of the sale transaction.

The preliminary contract set the deadline within which the final contract is to be concluded on July 31, 2022.

The sale of the Property means the achieving of the economic objective set by the partners of Irydion Sp. z o. o. that is the construction of an office complex, rental of office space and sale of real estate.

The Issuer is the owner of 50% of shares in the company Irydion sp. z o.o. seated in Warsaw.