Current report 1/2018   (10.01.2018)

Title:

Payment within the agreement with the Tanzanian company NDC

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of URSUS S.A. hereby informs that on the 10th January 2018 the Issuer received at its bank account the payment for delivery of lots of the subject of the Sales Agreement of the 22 October 2015, executed with National Development Corporation (NDC) with the seat in Dar es Salaam (Tanzania), of which the Issuer informed in the current reports no. 38/2015, 5/2016, 29/2016, 39/2016 and 47/2016. 

The payment received by the Issuer in the amount of 28.955.369,34 PLN, equivalent of 8.332.240,61 USD, is a payment for the lots of agricultural tractors, implements, spare parts and equipment for assembly hall delivered to Tanzania within the contract, in the amount of 58% their value, as well as for the lots of the contract subject already received by the buyer, according to the payment terms set out in the agreement with NDC.

All payments within the agreement with NDC are made by Bank Gospodarstwa Krajowego, within the Agreement between the Government of the Republic of Poland and the Government of the United Republic of Tanzania on extending a tied aid credit.

For execution of the contract the Issuer has till now received in total 33.785.052,38 USD (including the advance payment in the amount of 40% of the total value of the agreement, i.e. 22.000.000 USD), which is equivalent of 133.604.709,22 PLN.

Till now the Issuer has executed a part of the planned deliveries of the subject of the Agreement, subsequent deliveries will be made in successive periods.

At the same time the Issuer informs that as far as regards execution of the second part of another African contract, concluded in 2013 with the Ethiopian company METEC, the negotiations are still going on. In connection with specificity of negotiations in African countries, which consists, among others, of protracted, often multi-annual character, at this stage the Issuer’s Management Board is not able to predict the final of these talks. Both finalization of the second part of the contract and final failure of the parties to reach agreement are possible. The first part of the contract in the amount of 45 million USD was executed in 2015.