Report no.: 20/2014

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.

 

SUBJECT: Concluding a significant agreement with IMPEXRUR S.A.

 

CONTENT OF THE REPORT:

The Management Board of Izostal S.A. (Company) informs that on June 25th, 2014 Izostal S.A. Company concluded a transaction of sale of pipes with IMPEXRUR S.A. Company based in Sanok. As a result of the concluded transaction the total value of purchase/sale contracts concluded by the Company with IMPEXRUR S.A. has exceeded 10% of the Company’s equity capital from October 29th, 2013 (current report no 29/2013) and amounted to PLN 30,381 thousand (net).

During this period, the contract of the highest value was the transaction of sale of casing by Izostal S.A. (Seller) to IMPEXRUR S.A. Company (Buyer) concluded on June 25th, 2014, of the total value of PLN 16,978 thousand (net).

 

The subject of the contract shall be delivered by the Seller until October 27th, 2014.

 

The concluded agreement contains the following provisions concerning penalties:

1. The Buyer has the right to charge the Seller with contractual penalty if:

a) the Buyer withdraws from the contract for reasons attributable to the Seller - in the amount of 10% of the net value of undelivered batch of the contract subject,

b) the object of the contract is handed over with delay - in the amount of 0,1% of the net value of undelivered batch of the contract subject for each day of delay, and in case the delay is longer than 20 days, in the amount of 1% of the net value of undelivered batch of the contract subject, for each day following the lapse of this date,

c) delay in the removal of defects is longer than 7 days the Seller shall pay to the Buyer 0.4% of net value of the defective batch of the object of the contract.

2. The Buyer, irrespective of the contractual damages set forth in this contract, may claim compensation from the Seller in excess of contractual damages on general principles provided for in the civil code.

 

The other conditions of the contract do not differ from the conditions applied commonly for such contracts.

 

Transactions with IMPEXRUR S.A. Company signed in the above mentioned period meet the criterion of a significant agreement as their total value exceeds 10% of the equity capital of the Company. 

 

Specific legal basis: §5 clause 1 item 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

 

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:

Management Board President, Marek Mazurek  2014-06-25

Proxy, Marek Matheja 2014-06-25

 

INFORMATION ON THE ENTITY:

Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA

Abbreviated name of the issuer:  IZOSTAL S.A

Sector based on the classification of Warsaw Stock Exchange:  Other industry

Address: 47-120 Zawadzkie Polna 3

Telephone: (77) 405 65 00

Fax: (77) 405 65 01

e-mail:info@izostal.com.pl

www.izostal.com.pl

VAT No. [NIP]:756-00-10-641

Statistical No. [REGON]: 530884678