Current Report No. 19/2024

The Management Board of INPRO SA (the “Issuer”, “Company”) with its registered office in Gdańsk informs that on 27June 2024 the Company signed working capital agreement No. 10/030/24/Z/OB with mBank SA with its registered office in Warsaw (“mBank,” the “Bank”) on the following conditions:

1. Object of the agreement: financing and refinancing of the costs of construction of the “Optima – Stage VIII” project (hereinafter the Project Task) within the OPTIMA Property Development Project. 
2. 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 type. The agreement contains, without limitation, the following provisions:
   1. Credit amount: up to PLN 22,600,000.00.
   2. The financial conditions do not deviate from those commonly used for that type of agreements: the credit interest rate is based on 1 M WIBOR + the Bank's margin; there is a credit facility fee, and a handling fee.
   3. Drawings: following compliance with drawing conditions in tranches, on the prefinancing basis. 
   4. Credit transaction period: until 30/06/2026.
   5. Repayment conditions: the principal repaid in 12 equal monthly instalments commencing from 31/07/2025; interest repaid on a monthly basis. Each release from the open housing trust account of the funds paid in relation to the sale of premises on the project financed by the credit shall be allocated in the following way: 93% of the payment towards the premature repayment of the credit (the repayment of the first principal instalments, also during the drawing period), 7% to the Company's current account kept by the Bank.
   6. In addition to establishing legal security for credit repayment and the payment of the fee, the credit launch conditions will include: documenting the borrower's contribution in the amount of PLN 7,561,900.00 comprising the value of land and part of the costs/expenditure of the Project Task described above, documenting the advance sales on the Project Task at the level of 20 % of the floor area of the units in total (property development agreements + the payment of the 1^st instalment of a minimum 10% of the price of the unit) and documenting the preliminary sale of the previous Optima – Stage VII project task at the level of 50 % of the total floor area of the units. 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. 
3. Legal security for credit repayment:

1. A contractual real estate mortgage up total to PLN 33,900,000 in favour of mBank SA on land located in Gdańsk, Jasińskiego Street, for which land the Gdańsk-North District Court in Gdańsk, 3^rd Land and Mortgage Register Division, maintains land and mortgage register No. GD1G/00297633/7 – to secure the repayment of the principal amount and secondary liabilities: bank commissions, interest, and debt collection and enforcement costs. 
2. Assignment of rights following from the insurance agreement for the real estate being credited in favour of the Bank.  
3. A blank promissory note with a promissory note declaration.

4. Additional conditions: from the date of the conclusion of the credit agreement, the funds from the sale of the premises at the project being credited and not covered by the Property Development Act (the Act of 20 May 2021 on the protection of the rights of the acquirer of residential premises or a single-family house and on the Developers’ Guarantee Fund) are to be sent to a separate revenue account; completion of construction works and procurement of the occupancy permit for the building by 30/06/2025; maintaining financial ratios specified by the Bank during the credit period. 
5. 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. 
6. 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 significance 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 mBank SA during the last 12 months, that value being PLN 113,220,000.

Detailed legal grounds: Article 17(1) of 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).