Current report no. 9/2016 (15.02.2016)
Title:
Conclusion of a material agreement by the Issuer’s subsidiary - Bioenergia Invest S.A
Legal basis:
Art. 56 sec. 1 point 2 of the Act on Public Offering – current and periodical information
Message:
The Management Board of the Issuer informs that on the 15th February 2016 the Issuer was informed that its subsidiary Bioenergia Invest S.A. with the seat in Warsaw (Supplier) concluded on the 12th February 201 with the company Tergo Power Lublin sp. z o.o. with the seat in Lublin (Buyer) a framework agreement on biomass sale.
The above-mentioned agreement regulates the framework conditions of the mutual cooperation of the Parties in the scope of biomass sale, agreed during the current negotiations. The subject of this agreement is supply by Bioenergia Invest S.A to the Buyer of biomass from agriculture of the total estimated value near 40 million PLN per year, in the period of 15 years from the date of the first full year of commercial operation of the Buyer’s power plant.
The Parties agreed the quality parameters of the supplied biomass and the price formula for the sold biomass, as well as the maximum unit price binding for 5 full years of validity of the agreement. The price of biomass in consecutive years will be agreed on the basis of separate written arrangements of the Parties.
According to the agreement provisions, the Buyer warrants that the Supplier is the exclusive supplier of 70% to 80% of the yearly biomass consumption to the power plant. The Parties agreed that the Buyer can not take over any of Supplier’s subcontractors or suppliers and can not take any actions aiming at their takeover both during the validity period of the agreements and for a period of two years thereafter.
The Parties agreed that the final agreement on biomass sale regulating in detail the conditions of sales shall be concluded within two months from the date of conclusion of the framework agreement. The final agreement will not change the agreed financial conditions and will provide for, among others, the terms of provision of guarantees, conducting quality tests of biomass and will include provisions concerning liquidating damages.
Other provisions of the agreement do not differ from the standard terms commonly used in this kind of agreements.
The above-mentioned agreement is considered to be material due to the fact that at the date of its conclusion its total estimated amount exceeds 10% of the Issuer’s equity.
The legal basis of the present report is §5 sec.1 point 1 and point 3 in connection with §9 of the Regulation of the Minister of Finance dated 19 February 2009 regarding current and interim reports published by issuers of securities and the terms of finding as equivalent the information required under the laws of any non-member state (Journal of Laws, 2009 No 33, point 259 with subsequent changes).
