Title:

Conclusion of the assignment agreement of the contract with the Tanzanian company SUMA JKT

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of URSUS S.A. hereby informs that on the 9th August 2016 the Issuer was notified about conclusion by URSUS S.A., the Tanzanian company The National Service Corporation Sole (SUMA JKT) and National Development Corporation with the seat in Dar es Salaam (Tanzania) of the Assignment Agreement of rights and obligations resulting from the sales agreement (contract) concluded between URSUS S.A. and SUMA JKT on the 22nd October, of which the Issuer informed in the current reports no. 38/2015 and 5/2016.

According to the provisions of the concluded Agreement, the company SUMA JKT (Assignor) with effect from the 5th August 2016 assigned and transferred to the company National Development Corporation (Assignee) all rights and obligations of the Buyer specified in the Contract of the 22nd October 2015 for sales of tractors, implements and spare parts of the total value 55 million USD. According the Agreement, the Issuer consented the above-mentioned assignment and further performance of the contract by the company National Development Corporation.

All other provisions of the contract described in the current reports no. 38/2015 and 5/2016 remain unchanged. According to this contract, the Issuer will supply 2400 agricultural tractors in SKD form in the power range 50-85 HP, together with implements and spare parts thereof, as well as it will assure supply of equipment for assembly hall and eight servicing centers for tractors. The Issuer will organize also trainings for the Buyer’s staff and will assure the technical support to the required extent.

The first payment under the contract will be made as an advance payment before starting deliveries in the amount of 40% of the contract value, i.e. 22.000.000 USD. 58% of the total value in the amount of 31.900.000 USD will be paid to the Issuer after submission of the appropriate transport documents for subsequent deliveries of the goods, while the remaining 2% of the price in the amount of 1.100.000 USD will be paid after signing by the Buyer of the acceptance protocols for the received goods.

Now URSUS S.A. is executing the first delivery of the subject of the contract.

According to the Individual Reporting Standard of URSUS S.A., adopted by the Issuer with reference to the reporting obligations resulting from the Market Abuse Regulation, the above-mentioned agreement is considered to be material due to the fact that its value exceeds 10% of the equity of the Issuer’s Capital Group.