Current Report 32/2020

Signing of a significant agreement with SGB Bank SA

Only the Polish version of this document is legally binding.
This translation is provided for information only.
Every effort has been made to ensure the accuracy of this publication.

The Management Board of INPRO S.A. (the "Company") with its registered office in Gdańsk informs that on 26 October 2020 the Company signed working capital agreement No. OBR/506775/2020/2 with SGB - Bank S.A. with its registered office in Poznań ("SGB," the "Bank") on the following conditions:

The object of the agreement: partial refinancing of the costs of purchase of the plots of land located in Straszyn, the Pruszcz Gdański commune.

1.            Significant conditions of the agreement: The agreement between the Company and the Bank contains standard provisions and is a typical agreement concluded in transactions of that kind. The agreement contains, without limitation, the following provisions:

a)            Credit amount: up to PLN 9,000,000.00.

b)            The financial conditions do not deviate from those commonly used for that type of agreements: the credit interest rate is based on 3 M WIBOR + the Bank's margin; there is an arrangement and commitment fee as well as the pre-payment penalty.

c)            Drawings: until 30/10/2020, one-off payment to the Company's account.

d)            Credit transaction period: until 02/10/2023.

e)            Repayment conditions: the principal repaid in 35 monthly instalments: 34 equal ones and the 35th instalment as a compensatory instalment, payable from 30/11/2020; interest repaid on a monthly basis.

f)             Credit launch conditions: establishing legal securities for credit repayment and the payment of the commission. As regards establishing a mortgage in favour of the Bank, the confirmation of filing at a court of a paid-for application for the entry of the mortgage and the payment of relevant civil law transaction tax are the credit launch conditions, too.

2.            Legal security for credit repayment:

a)            A contractual mortgage for SGB Bank S.A. up to PLN 13,500,000 on land located in Straszyn, the Pruszcz Gdański commune, such land covered by land and mortgage register No. GD1G/00094562/5 maintained by the Gdańsk-North District Court in Gdańsk, 3rd Land and Mortgage Register Division, to secure the repayment of the principal and secondary liabilities: bank commissions, interest and debt collection and enforcement costs.

b)            A blank promissory note with a promissory note declaration,

c)            Notarised statement by INPRO S.A. on the submission to enforcement up to PLN 13,500,000 in the manner prescribed by Article 777 of the Civil Procedure Code, with the time limit for the attachment of the writ of execution by 02/10/2026,

d)            A power of attorney to the Company's current account kept at SGB in favour of SGB,

3.            Additional conditions: the obligation to advise the Bank of contracting a credit-like liability, e.g. a credit, loan, surety, guarantee, promissory note and other balance-sheet and off-balance-sheet liabilities; the obligation to obtain the Bank's consent to establishing any kind of encumbrance (including a mortgage) on the real estate constituting the legal security of credit repayment, submission of an appraisal survey for the property being credited every 34 months. The obligation to put the annual turnover of min. PLN 15,000,000 through bank accounts at SGB-Bank S.A.

4.            If credit repayment is late, the Bank will collect interest on the outstanding amount for the period from the day following the deadline until the payment with reference to the interest rate for overdue credit.

5.            The credit agreement does not contain other special conditions deviating from those commonly used in agreements of that kind or provisions pertaining to penalties, whose value would exceed 10 % of the value of that agreement or the equivalent of 200,000 euros, with reference to the average rate published for a given currency by the National Bank of Poland and binding on the date of conclusion of that agreement.

The Issuer's significant criterion for agreements is the considerable total value, on the Issuer's scale, of the object of the agreements concluded by the entities belonging to the INPRO Corporate Group with the group of cooperative banks comprising SGB-Bank SA during the last 12 months, that value being PLN 39,850,000.

Detailed legal grounds: Article 17 para. 1 of the Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 on market abuse (the market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (also referred to as the MAR).