Kvutzat Acro Ltd. — Capital/Financing Update 2026

May 20, 2026

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer. .

Acro Group Ltd. ("the Company")

May 20, 2026

To

To

Israel Securities Authority

Tel Aviv Stock Exchange Ltd.

www.isa.gov.il

www.tase.co.il

Subject: Engagement in a Financing Agreement for the Construction of the Tel HaShomer Project

Further to the provisions of Section 8.2 of the Corporate Business Description report which was attached as Chapter A to the Periodic report of the Company for the year 2025¹ ("Corporate Business Description Report"), regarding the Tel HaShomer project which is expected to include approximately 209 residential units intended for long-term rental and commercial spaces, held by the Company indirectly at a rate of approximately 51% ("the Project")², the Company is pleased to update that on May 20, 2026, the Project partnership ("the Borrower") entered into a financing agreement with a local bank ("the Financing Agreement" and "the Bank", respectively), for the purpose of constructing the Project, in an amount of up to approximately 440 million NIS, which includes the existing credit provided by the Bank to the Project partnership for the purpose of purchasing the Project land, which as of this date totals approximately 143.3 million NIS.

For details regarding the terms of the Financing Agreement, see Appendix A attached to this immediate report below.

Respectfully,

Acro Group Ltd.

Signed by: Ziv Yaacobi, Director and CEO

1. Published on March 18, 2026 (Reference No.: 2026-01-023692).
2. The remaining holdings of the Project partnership are held (indirectly) by entities from the Clal Insurance Company Ltd. group in accordance with the cooperation agreement with it as detailed in Section 8.2 of the Corporate Business Description Report.

2 HaManofim St. corner of 11 HaSadnaot St., Building B, 8th Floor, P.O.B. 12889, Herzliya Pituach 4672553 Phone: 09 971 8900 Fax: 09 971

Appendix A - Details regarding the Loan Agreement

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Loan Amount	Repayment Dates	Liens / Collateral	Interest and Fees	Other Obligations
Up to 439.84 million NIS ("the Banking Services" and the "Banking Services Ceiling" or "Credit Ceiling", as applicable) which may be provided as revolving loans ("the Revolving Loans"), of which the Project partnership has utilized approximately 143.3 million NIS ("the Land Stage Credit").	The Borrower has undertaken to repay all its debts no later than September 30, 2028. Without derogating from the above, the Borrower has undertaken to pay the interest on the repayment dates determined in the Revolving Loans from time to time; the financial support fee in 6 monthly installments starting from the date of signing the agreement, and the credit allocation fee at the end of each quarter for the preceding quarter. It was designated that if the preconditions detailed below are not met by September 30, 2026, the Project partnership has undertaken to repay the full Land Stage Credit.	To secure the fulfillment of the Borrower's obligations under the Financing Agreement, first-degree fixed liens will be registered in favor of the Bank, as is customary in agreements of this type, including the liens and collateral detailed below: 1. A first-degree lien on the land rights according to the lease agreement signed with the Israel Land Authority. 2. A first-degree lien on the rights according to the contract for the execution of public infrastructure. 3. A first-degree lien on the rights according to the agreement for the construction of a long-term residential rental complex with Dira LeHaskir. 4. Unlimited first-degree fixed liens on all rights towards tenants of units in the Project. 5. Unlimited first-degree fixed liens on all rights towards contractors and/or suppliers involved in the Project. 6. An unlimited first-degree fixed lien on all rights under the Project's insurance policies. 7. A first-degree fixed lien on the rights in the Project account. In addition, unlimited guarantees were provided by the general partner in the Project partnership (wholly owned by the Company) and another company wholly owned by the Company regarding the full obligations of the Borrower (100%). Furthermore, the Bank is entitled to demand additional collateral at any time if there is a decrease in the value of the collateral.	The main fees are as follows: Pre-agreed amounts that the Borrower utilizes as NIS loans will bear Prime interest plus a margin ranging between 0.25% and 0.35% per year ("the Interest"); A financial support fee at a rate of 0.2% of the project budget (and not less than approximately 1.2 million NIS) ("the Financial Support Fee"); a non-utilization fee in a range between 0.25% and 0.35% per year which will be calculated from the unused Banking Services Ceiling amount ("the Credit Allocation Fee").	Preconditions: The agreement includes a requirement for the fulfillment of preconditions for the provision of the Banking Services by September 30, 2026, including as of this date: capital investment in the Project in a set amount, where as of this date the Borrower still needs to provide equity in the amount of approximately 23 million NIS (unless due to agreed reasons it will not be possible to occupy certain residential units in the Project, in which case the Company will be required to provide additional equity in an amount equal to the expected decrease in Project profitability as a result, and in addition, upon the occurrence of such a case, the interest borne by the loan will increase by a negligible rate); creation of the collateral detailed above; correction of building permit conditions regarding one of the plots; and provision of the project supervisor's approval regarding compliance with the preconditions.
Grounds for Immediate Repayment: The agreement includes standard grounds for immediate repayment of the credit facility and/or realization of the collateral, as well as additional grounds (relative to the Borrower and the guarantor with the necessary changes) such as: delay in the execution of the project; decrease in project profitability compared to the zero report (feasibility study); cancellation of the lease contract and/or the agreement with Dira LeHaskir; material deviation from project plans; transfer of rights in the project; breach of any obligation towards a third party that has material implications for the project; a change occurs which, at the Bank's discretion, endangers or may endanger the chances of credit repayment; imposition of foreclosures in an amount determined in the agreement; breach of obligations towards the Bank; if the Project partnership is required to repay any third party a determined amount in immediate repayment; a detrimental change occurs in the collateral and/or its value; budget overrun; a change in the holdings structure of the Project partnership or its incorporation documents occurs, or if it repaid loans to its shareholders without the Bank's consent; or if it passed a resolution on distribution and/or merger and/or structural change.

5/20/2026 | 2:52:02 PM | v1.2.5