CFI HOLDING S.A.: Execution of a Material Agreement
Pursuant to § 5 section 1 item 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information provided by issuers of securities and the conditions for recognizing as equivalent information required by the laws of a non-member state, the Management Board of INTAKUS S.A. (the Issuer, the Company) announces that on 2 June 2014 it received four agreements, dated 31 May 2014, signed by the other party, concluded with Central Fund of Immovables Sp. z o.o. with its registered office in Łódź (the Investor). Each of the agreements covers the execution of comprehensive construction works for four separate properties, where the Issuer acts as the General Contractor, together with the simultaneous conclusion with the Investor of four separate subcontract agreements related, inter alia, to the supply of materials, equipment, and furnishings, as well as the execution of construction works agreed between the parties on the Investor’s properties located in the city of Łódź, namely at ul. Piotrkowska 47/Zielona 2, Piotrkowska 13/Próchnika 2, Plac Zwycięstwa 2 – building H, and Plac Zwycięstwa 2 – front building, which collectively meet the criterion of a material agreement concluded by the Issuer.
The total value of the above-described agreements concluded with the Issuer as General Contractor amounts to PLN 6,200,000.00 net, which may be subject to change in cases provided for in the agreements, i.e., in the event of changes in the scope of works covered by the agreements. The total value of the aforementioned subcontract agreements is set at PLN 5,580,000.00 net and may also be subject to change in cases provided for in the agreements, which together gives a total value of all concluded agreements of PLN 11,780,000.00.
Among the above agreements, the highest-value agreement is the one concluded on 31 May 2014 with Central Fund of Immovables Sp. z o.o. with its registered office in Łódź for the execution by the Issuer, as General Contractor, of the comprehensive construction works specified in this agreement regarding the Investor’s property located in Łódź at Plac Zwycięstwa 2 – front building.
The value of this agreement amounts to PLN 2,000,000.00 net and covers, on a lump-sum basis, both the expected cost of materials, equipment, and labor, as well as the remuneration due to the Issuer. The value of this agreement may change in the event of modifications to the scope of works covered by the agreement.
Other terms of the construction agreements and subcontract agreements do not differ from those commonly applied for this type of agreements.
The agreement does not include any provisions regarding contractual penalties, and therefore does not include any provisions specifying whether the payment of contractual penalties entitles the party to claim damages exceeding the amount of the penalties.
No conditions, including suspensive or terminating conditions, were provided in the agreement; however, the agreement specifies the final deadline for the completion of construction works as 31 December 2015.
The total value of the above-described agreements concluded by the Issuer with the Investor within the last 12 months exceeds 10% of the Issuer’s equity, thereby meeting the criteria for recognition as a material agreement.
