The Management Board of Grupa Niewiadów – PGM S.A., with its registered office in Warsaw (the Issuer), hereby announces that on November 13, 2025, the Issuer’s subsidiary, Zakłady Sprzętu Precyzyjnego Niewiadów sp. z o.o. (ZSP Niewiadów), in which the Issuer holds shares representing 100% of the share capital through Grupa Niewiadów S.A., entered into an agreement with Proguns Group S.A., with its registered office in Warsaw (Proguns), regarding cooperation in the production of 40 mm caliber ammunition (the Agreement).
The purpose of this Agreement is to establish the terms of cooperation between the parties, consisting of the preparation and implementation of a joint venture for the production of 40 mm ammunition in Poland. In accordance with the provisions of the Agreement, the cooperation will be based on the technology, expertise, experience, and know-how of ZSP Niewiadów, as well as that acquired by ZSP Niewiadów from a foreign partner, and will utilize capital provided by Proguns.
In accordance with the provisions of the Agreement, the parties agreed to jointly finance the process of launching production of 40 mm ammunition, including covering the costs associated with production preparation, the purchase of production equipment, and the acquisition of production technology rights, with Proguns agreeing to make an advance payment of PLN 4,000,000 for this purpose.
In accordance with the provisions of the Agreement, the specific terms of cooperation between the parties regarding the production of 40 mm ammunition will be set forth in a separate implementation agreement, which will be concluded after ZSP Niewiadów enters into an agreement with the supplier of 40 mm ammunition production technology. This means that the Agreement is of a general nature and serves as the basis for developing long-term cooperation between the parties regarding the production and commercialization of 40 mm ammunition.
The Issuer announces that the execution of the Agreement constitutes the implementation of the provisions of the Term Sheet entered into by Forum 119 Closed-End Investment Fund, Grupa Niewiadów-PGM S.A., ZSP Niewiadów, and Proguns, as previously announced by the Issuer in Current Report ESPI No. 65/2025 dated October 21, 2025.
The Issuer reminds that, following the implementation of the provisions of the agreement announced by the Issuer in Current Report ESPI No. 8/2025 dated March 17, 2025, Proguns will become part of the Issuer’s Capital Group.