Conclusion of the investment loan agreement for funding the acquisition of shares in Ponary

With regard to the current reports no. 11/2017 and 22/2017 on the acquisition of 67.4% of shares in total in Gospodarstwo Rolne Ponary sp. z o.o. (Ponary), the Management Board of Przedsiębiorstwo Przemysłu Spożywczego "PEPEES" S.A. (Company, Issuer) informs that on 12 December 2017 it concluded the investment loan agreement (Loan) with PKO Bank Polski S.A. (Bank) for the amount of PLN 10.53 million for the purpose of funding and refunding of  expenditures for the acquisition of 100% of shares in Ponary (Agreement). The amount of the Loan constitutes 90% of the price for purchase of shares in Ponary, and the remaining 10% of the above mentioned price will constitute an own contribution of the Issuer. The Loan will be granted for the period until 30 June 2025, and the repayment of the Loan will be made in equal monthly installments. The interest rate on the Loan was granted on the basis of WIBOR 1M increased with a margin of the Bank. The Agreement is secured by a total mortgage up to the amount of PLN 15.795 million on the lands owned by Ponary located in Roje, assignment of receivables under the insurance agreement for the above mentioned property, pledge on all shares in Ponary and the own blanc promissory note together with a promissory note declaration.
The remaining terms and conditions of the Agreement do not deviate from the terms and conditions commonly used for this type of agreements. With regard to obtaining the above mentioned Loan, the Issuer’s intention is to fund the acquisition of the remaining 32.6% of shares in Ponary, assuming that with regard to these shares, the National Support Centre for Agriculture will not execute its pre-emption right.

Signatures of the persons representing the Company
President of the Management Board Wojciech Faszczewski 2017-12-12
Member of the Management Tomasz Rogala 2017-12-12