Current report no. 7/2017 (17.03.2017)

Title:

Delayed disclosure of confidential information

Legal basis:

Art. 17 sec. 4 Market Abuse Regulation

Message:

The Management Board of URSUS S.A., acting according to the Art. 17 sec. 1 and 4 of Market Abuse Regulation, makes public the confidential information about starting by URSUS S.A. on the 6th March 2017 negotiations with the company KARMAG INDUSTRIE with the seat in Oran (Algeria). Disclosure of the Confidential Information was delayed on the 6th March 2017.

The Confidential Information is the following:

„The Management Board of URSUS S.A. informs that, in compliance with the Market Abuse Regulation, on the 6th March 2017 decided to delay the obligation to notify the public of the information about starting by URSUS S.A. on the 6th March 2017 negotiations with the company KARMAG INDUSTRIE with the seat in Oran (Algeria) aimed at conclusion of agreement on industrial and commercial cooperation.

The reason of the Issuer’s decision about delay in disclosure of the confidential information concerning the start of negotiations is the fact that launching discussions with the Algerian partner does not prejudge conclusion of the target agreement and it constitutes an initial stage of the planned undertaking of the Parties. Successful cooperation of the Parties depend on the course of the further protracted process of joint negotiations, the aim and result of which will be special circumstances or a special event, i.e. conclusion of a cooperation agreement. Disclosure of the above-mentioned Confidential Information was made by the Management Board conditional on the course of subsequent stages of this process.

Besides, disclosure of information about acquisition of an Algerian partner could have e negative impact on the course or result of the negotiations of the Parties, because it could directly raise attention of the competitors to that market and the partner like KARMAG INDUSTRIE. An immediate disclosure of the information could be detrimental to the legitimate interest of URSUS due to possibility of compromising the appropriate assessment of the information by the public.

Besides, of significant importance is the Issuer’s willingness to avoid attempts of the competitors to influence the decision of the other party about withdrawing from the arrangements. Moreover, the Parties undertook to keep confidentiality and not to disclose any information thereof.

Taking into account the legitimate interest of the Company and its shareholders, the Company will publish the full information about the negotiations and possible concluded agreement on the date when the results of the held negotiations is known, i.e. on the day of unsuccessful conclusion of the negotiations or on the day in which an agreement with the Algerian partner is effectively concluded, i.e. immediately after the expiry of the period when such a disclosure could have a negative impact on the Issuer’s relations with its business partners and execution of the concluded contracts, as well as on the competitive position of the Issuer.

The Management Board of URSUS S.A. assures to preserve confidentiality of the information delayed for disclosure and warrants that the delayed disclosure of the information will not mislead the public."

The reason of disclosure of the above-mentioned Confidential Information is the fact that on the 17th March 2017 the Issuer concluded with the company KARMAG INDUSTRIE with the seat in Oran (Algeria) the commercial and industrial cooperation agreement aiming at establishment of a Polish-Algerian joint-venture company, of which the Issuer will inform in details in the following current report published today.

In compliance with the Art. 17 sec. 4 , third paragraph of MAR, immediately after publication of this report the Company will inform the Financial Supervision Commission about the delay of disclosure of the Confidential Information, together with confirmation of complying with the conditions of such a delay. At the same time the Company’s Management Board indicates that the main reason of delay in disclosure of the Confidential Information was protection of the legitimate interests of the Company and its shareholders.