A subsidiary of the Issuer obtains a permit to operate in a special economic zone

A subsidiary of the Issuer obtains a permit to operate in a special economic zone

The Management Board of Poznańska Korporacja Budowlana Pekabex S.A. (hereinafter referred to as the “Issuer”) would like to inform you that today Kokoszki Prefabrykacja S.A., a subsidiary of the Issuer (hereinafter referred to as the “Company”), obtained a permit to operate in the Pomeranian Special Economic Zone (hereinafter referred to as the “Zone”). The permit allows the Company to conduct, in the Zone area, business activity understood as manufacturing, commercial and service activity in respect of goods and services manufactured/provided in the Zone area, specified in the Polish Classification of Goods and Services (PKWiU) in:

– class 16.23 – manufacture of other builders’ carpentry and joinery;

– class 23.61 – manufacture of concrete products for construction purposes;

– class 23.63 – manufacture of ready-mixed concrete;

– class 23.69 – manufacture of other articles of concrete, plaster and cement;

– class 25.11 – manufacture of metal structures and parts of structures;

– class 72.19 – other research and experimental development on natural sciences and engineering;

– class 72.20 – technical testing and analysis;

In accordance with the permit, the conduct of business activity in the Zone area is conditional upon the Company incurring, in the Zone area and by 31 December 2019, capital expenditures in the amount over PLN 29,800,000 and employing at least 15 new employees and maintaining the employment level by at least 31 December 2024.

In connection with the investment in the Zone area, the Company would be entitled to tax exemption on account of eligible investment costs. The maximum amount of investment costs eligible for public aid in the form of tax exemption cannot exceed PLN 38,700,000.

The information was classified as confidential due to the fact that the Issuer is contemplating an investment, through the Company, in the form of construction of a new manufacturing plant in the Zone area. Furthermore, the Issuer would like to inform you that no binding decisions or obligations have been made or assumed in respect of the investment, and the obtained permit does not constitute an obligation to incur capital expenditures. If the decision is made to commence investment in construction of a new manufacturing plant, the Issuer will inform you about it by way of a separate current report.

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