The conclusion of the significant agreement

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Date of publication:05.09.2022

The Management Board of PROCHEM S.A. with its seat in Warsaw (hereinafter referred to as the “Issuer”), informs that on September 5, 2022, received the contract signed by BIOAGRA S.A. for the general implementation of an investment involving the construction of an installation under the name of ”Installation for technological heat recovery and its use in further technological”.

The contract is scheduled to be completed in June 2023.

The Issuer’s remuneration includes remuneration for design works and for works in the scope of GRI (Management Contracting), including the margin and coverage of the costs of the execution of subject of the contract, hence the final amount of PROCHEM S.A. remuneration will be possible to determine after only the settlement of the costs incurred. Taking into account the investment budget and the size of the works, the expected remuneration of the Issuer will amount to approximately PLN 45 million net.

The contract includes contractual penalties, the maximum value of which is limited to PLN 0.5 million. Each party may claim for compensation on general terms in excess of the contractual penalties, however, up to an amount not exceeding PLN 2.5 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 expected value of the contract.