Menu Close

The conclusion of the significant agreement

The conclusion of the significant agreement

Date of publication: 19.07.2021

The Management Board of PROCHEM S.A. with its seat in Warsaw (hereinafter referred to as the “Issuer”), informs that on July 19, 2021, was received the signed contract that the Issuer concluded with BIOAGRA S.A. for the general contracting of the investment covering the construction of the installation under the name “Construction of a Vacuum Column with accompanying equipment to improve the quality parameters of ethanol at the Ethanol Production Plant “Goświnowice”.

The deadline for execution of the contract was determined on May 2022.

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 scope of the works, the expected remuneration for the Issuer will exceed PLN 15 million.

The agreement contains provisions on contractual penalties, their value is limited to PLN 300,000.00. Each party may claim damages on general terms in excess of the contractual penalties, however, up to the amount not exceeding PLN 1.5 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 value of the contract.