Korporacja Gosporadcza Effekt S.A.

Legal Proceedings Report • Jul 21, 2022

Dismissal of the action for annulment of theresolution no. 3 of the Extraordinary General Meeting of Shareholders ofKorporacja Gospodarcza _quot;Efekt_quot; S.A. of July 2, 2020 regarding theincrease of the share capital of the Company by issuing series FF shareswith the subscription rights of the existing shareholders.Inreference to the current report of ESPI No. 35/2020 published by theManagement Board of the Issuer, supplemented in subsequent periodicreports, as well as in the current report of ESPI No. 5/2022,information on bringing an action against the Issuer for annulment ofthe resolution No. _quot; ARE. of July 2, 2020 regarding the increase of theCompany's share capital by issuing series FF shares with thesubscription rights of the existing shareholders, Management Board ofKorporacja Gospodarcza _quot;Efekt_quot; S.A. (hereinafter referred to as the_quot;Issuer_quot;) announces to the public that on July 20, 2022 he receivedinformation from his attorney that the Court of Appeal in Krakow, 1stCivil Division issued a judgment of July 1, 2022, which the Courtchanged the appealed against by the Issuer, the judgment of the Court offirst instance in such a way that it dismissed the above-mentioned anaction and awarded jointly and severally to the Issuer the costs oflegal representation for both instances. The above-described judgment isfinal. From the very beginning, the Issuer questioned the legitimacy ofthe claim covered by the lawsuit. However, due to the fact that theclaim in this case was secured by the Court by suspending theenforcement of this resolution, about which the Issuer informed in theabove-mentioned periodic reports, due to the expiry of the periodprovided for in Art. 431 § 4 of the Commercial Companies Code to submita resolution to increase the capital to the registry court, the increaseof the Issuer's share capital by way of the issue of series FF shareswill not take place. This means that due to the final dismissal of theclaim, bearing in mind the significant detriment of the Company and theinterests of the majority of shareholders who voted with a qualifiedmajority of almost 83% of votes in favor of the resolution fromregistered and ordinary bearer shares and 100% of voting forshareholders of shareholders holding registered privileged shares as tothe voting rights, the Issuer will consider its rights under Art. 746 §1 of the Code of Civil Procedure, a claim against shareholders whobrought the above-described action for compensation for the damagecaused by the performance of the security granted to them by suspendingthe enforcement of resolution no.3 of the Extraordinary General Meetingof Shareholders of Korporacja Gospodarcza S.A. of July 2, 2020 on theincrease of the Company's share capital by issuing series FF shares withthe subscription rights of the existing shareholders. The companyintended to allocate the funds obtained from the issue to ensurediversification and increase the profitability of revenues as well as tostrengthen involvement in the development of areas of operation, inparticular for a fuller use of the property belonging to the group inKrakow at Opolska 12 _quot;. The planned investments were to include, amongothers service, office and retail building and service and hotelbuilding, modernization of the Rybitwy retail complex, purchase ofinvestment real estate and acquisitions. It should be noted that theappeal against the Issue had a negative impact on the negotiations ofthe Management Board of the Company with the bank in connection with thedebt restructuring plans. The complainants are members of the existingoral shareholders' agreement, the formalization of which was notified tothe Company on October 19, 2020, which was published by the Issuer inthe current ESPI report No. 44 of October 19, 2020.Legalbasis: § 19 sec. 1 point 10) of the Regulation of the Council ofMinisters of March 29, 2018 on current and periodic information providedby issuers of securities and conditions for recognizing as equivalentinformation required by the law of a non-member state.