The conclusion of the significant agreement

Date of publication: 29.06.2018

On June 29, 2018, PROCHEM S.A. signed a contract with BIOTECHNIKA TOMASZ KAPELA seated in Łodź. The subject of the contract is to provide a comprehensive steel structure for the needs of ethanol production plant which is built by RED RIVER BIOREFINERY LLC in the USA. The delivery will be done in the FCA formula (Incoterms 2010) to the place of loading in Poland.

The contract value initially determined by the parties is approximately USD 1,840,000 (NET) – the final amount of remuneration will be calculated on the basis of actual deliveries. Deadline for completion of deliveries – 1st quarter of 2019.

The contract provides for contractual penalties; their value is limited to 10% of contractual remuneration.
The contract was considered significant because the expected value of this contract exceeds 10% of the issuer’s equity.