The Management Board of MBF Group S.A., with its registered office inWarsaw (the "Issuer", the "Company"), announces that the Issuer hasprovisionally entered into a commercial contract for the purchase of3,000 tonnes of top-grade (top-grade) in a volume of 3,000 tonnes froman entity forming part of the international industrial group IndoramaCorporation, one of the global leaders in the fertiliser and chemicalsproduction sector, with production and distribution assets in manymarkets worldwide. As at the date of publication of this report, theparties have agreed on the basic terms of the transaction; however, thecounterparty's details and selected operational elements will bedisclosed by the Company in an ESPI stock exchange report following fullagreement on the logistical terms and obtaining the seller's consent tothe publication of specific information, which is currently subject tofurther discussions between the parties.
The estimated value of the contract has been determined on the basis ofcurrent market prices prevailing on the European market and amounts toapproximately EUR 1,950,000 (in words: one million nine hundred andfifty thousand euros), which corresponds to approximately PLN 8,268,000(in words: eight million two hundred and sixty-eight thousand zlotys) atan exchange rate of 4.24 PLN/EUR. In accordance with the contractualarrangements, payment for the goods will be made on a 100% prepaymentbasis, with the Issuer making payment at the time of loading the goodsonto the means of transport (railway wagons), which is standard practicein dealings with producers from the Central Asian region. The Companyintends to finance the transaction from its own funds, with the optionof utilising standard financial instruments offered by bankinginstitutions. Further details regarding the pricing structure, deliveryschedules, logistical terms and the parties' liabilities are subject tocommercial confidentiality between the two companies.
The Issuer's Management Board regards the conclusion of this contract asa significant operational success for the Company, particularly in thecontext of the current geopolitical situation and the limitedavailability of fertilisers on the European market. Urea remains aproduct in high demand in Poland and Europe, due to both marketconditions and disruptions in global supply chains. In the ManagementBoard's view, securing a stable supply source under such conditionsstrengthens the Issuer's commercial position and creates potential forfurther sales growth and expansion of operations.
Deliveries will be made on the basis of the manufacturer's qualitydocuments, including the quality certificate and technical documentationcompliant with GOST 2081-2010, which confirms the product's commercialand industrial parameters. The product is standard granular urea used inagriculture and the chemical industry. In parallel with the process offinalising the logistics terms, the Issuer has commenced activitiesaimed at selling the contracted volume to end customers in Poland andother European countries. The preferred sales model will be thedistribution of the entire volume to a single or limited number ofwholesale customers, using DAP or FCA MaĆaszewicze delivery terms inaccordance with Incoterms. The Company will provide updates on all keystages of the transaction via ESPI current reports.
The Issuer's Management Board considers the contract to be significantfrom the perspective of the Company's operations, both in terms of itsvalue and the potential for further development of the cooperation. Inthe event of the successful completion of the first delivery, theparties envisage the possibility of continuing the cooperation in theform of regular, monthly deliveries, which may translate into a stablesource of revenue for the Issuer in subsequent periods.
The Issuer's Management Board considered the publication of thisinformation to be justified due to its potential impact on investors'assessment of the Company's financial position and development prospects.