Further to the content of ESPI Current Report No. 2/2024 dated January 9, 2024, The Management Board of Polska Grupa Militarna S.A. with its registered office in Warsaw (“the Issuer”) hereby announces that today, February 6, 2024, the Issuer entered into an agreement with a professional entity (“the Manufacturer”) in which the parties set forth the key terms of cooperation regarding the production of small arms (“the Agreement”).
In the Agreement, the parties confirmed their intention to enter into a framework agreement for the production and supply of small arms, under which the Manufacturer will produce 4,000 (four thousand) small arms for the Issuer in the form of carbines—calibers 5.56, 7.62, 300 BLK. Pursuant to the provisions of the Agreement, the framework agreement for the production and supply of small arms should be concluded by February 23, 2024. The Issuer explains that the reason for setting this deadline for concluding the agreement is the need to obtain final pricing terms from the Manufacturer’s subcontractors. The Issuer explains that the parties have already agreed on the maximum price per rifle; however, given the size of the order, there is a possibility of lowering this price once final prices are confirmed by the Manufacturer’s subcontractors.
The Issuer also notes that it estimates that the performance of the agreement—that is, the procurement and subsequent sale of the rifles to end customers—will generate revenues of over PLN 15 million for the Issuer.