Completion of subscription of series D and E shares of Archicom S.A., allotment of series D and E shares of Archicom S.A. and approval of a transaction with a related party

THIS MATERIAL AND THE INFORMATION CONTAINED HEREIN ARE SUBJECT TO RESTRICTIONS AND ARE NOT INTENDED FOR PUBLICATION, ANNOUNCEMENT, POSTING, DISTRIBUTION OR TRANSMISSION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN ANY PART, INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR OTHER COUNTRIES WHERE PUBLICATION, ANNOUNCEMENT, POSTING, DISTRIBUTION OR TRANSMISSION WOULD BE UNLAWFUL. THIS MATERIAL IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. PLEASE READ THE LEGAL RESERVATIONS AT THE END OF THIS MATERIAL.

Content of the Report:

In connection with current reports no. 41/2023 and 42/2023, Echo Investment S.A. with its registered office in Kielce ("Echo") announces the completion of the subscription process and the execution of the subscription agreements with respect to 3,892,568 series D shares and 6,107,432 series E shares of Archicom S.A. with its registered office in Wrocław ("Company"), with a nominal value of PLN 10.00 each, issued pursuant to Resolution No. 3/IX/2023 of the Extraordinary General Meeting of the Company dated 25 September 2023 on increasing the Company's share capital through the issuance of series D ordinary bearer shares ("Series D Shares") and series E ordinary registered shares ("Series E Shares", and together with Series D Shares "New Issue Shares") by way of private subscription, depriving existing shareholders of all preemptive rights with respect to all Series D and Series E shares, amending the Company's Articles of Association, applying for admission and introduction of Series D shares or rights to Series D Shares and Series E Shares to trading on the regulated market operated by the Warsaw Stock Exchange S. A. and dematerializing Series D Shares or rights to Series D Shares and Series E Shares ("Issue Resolution"), offered by way of private subscription with exclusion of subscription rights, in accordance with the provisions of the Issue Resolution.

As the New Issue Shares were duly subscribed and fully paid for, the Company's Management Board on 4 October 2023 adopted a resolution to allot to investors who signed the share subscription agreements, all Series D Shares, i.e., 3,892,568 Series D Shares with a nominal value of PLN 10.00 each, and to DKR Echo Investment sp. z o.o. with its registered office in Kielce (“Selling Shareholder”), which is a subsidiary of Echo, all Series E Shares, i.e., 6,107,432 Series E Shares with a nominal value of PLN 10.00 each. The issue price of all New Issue Shares is the same and amounted to PLN 22.00 per share.

A detailed current report on the completion of the subscription of the New Issue Shares will be published in accordance with § 16(1) of the Regulation of the Minister of Finance dated 29 March 2018 on current and periodic information provided by issuers of securities and conditions for recognizing information required by the laws of a non-member state as equivalent (Journal of Laws 2018, item 757).

At the same time, the Echo's Management Board informs that Echo's Supervisory Board, acting in the interest of Echo and with respect to the investment perspective of unrelated shareholders, including minority shareholders, has consented to the entry into by the Selling Shareholder, which is a subsidiary of Echo, of a significant transaction within the meaning of Article 90h(1)(1) of the Act of 29 July 2005 on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and on Public Companies ("Public Offering Act") with a related party, within the meaning of Article 90h(1)(2) of the Public Offering Act, i.e., the Company, in the form of the Company entering into a share subscription agreement with the Selling Shareholder concerning the Selling Shareholder's acquisition of 6,107,432 Series E Shares at a price of PLN 22.00 per Series E Share. In the opinion of Echo's Management Board, the agreement to take up Series E Shares was entered into on arm's length terms and is justified by Echo's interest in respecting the investment perspective of unrelated shareholders, including minority shareholders.

Legal reservations:

This current report has been prepared in accordance with the requirements of Article 17.1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/ 124/EC, 2003/125/EC and 2004/72/EC and Article 56.1.2 of the Act of 29 July 2005 on public offering and conditions for introducing financial instruments to organized trading and on public companies

This current report is for information purposes only and constitutes the fulfilment of the disclosure  requirement imposed on Echo Investment S.A. with its registered office in Kielce ("Echo") as a public company whose shares are admitted and introduced to trading on the regulated market operated by the Warsaw Stock Exchange and (i) it is not made available to promote, directly or indirectly, the purchase or acquisition of the securities of Echo or its subsidiaries, including Archicom S.A. ("Company") or to solicit, directly or indirectly, the purchase or acquisition thereof, and (ii) it does not constitute advertising or promotional material prepared or published by Echo for the purposes of promoting the securities of Echo or its subsidiaries, including the Company, the subscription, purchase or offer thereof, or to solicit investors, directly or indirectly, to purchase or subscribe for such securities.

This current report is not an advertisement as defined in Article 22 of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market and repealing Directive 2003/71/EC.

This current report and the information contained herein are not intended for publication, announcement, posting or dissemination, directly or indirectly, in or into the United States of America, Australia, Canada, Japan, South Africa or any other country where public dissemination of the information contained herein may be restricted or prohibited by law. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States of America except in transactions not subject to, or pursuant to an exception to, the registration requirements of the Securities Act. This current report is not an invitation to guarantee, underwrite, subscribe for, or otherwise acquire or dispose of any securities in any jurisdiction.

This current report and the terms described herein may not constitute the basis for action by persons other than Eligible Investors (as defined in this current report) or be used by such persons. Any investments or investment activities covered by this current report and the conditions described herein apply only to Eligible Investors. Apart from any duties and obligations that may be imposed on the Manager under applicable regulations, Powszechna Kasa Oszczedności Bank Polski Spółka Akcyjna – Oddział w Warszawie ("Manager"), its related entities and representatives do not and will not bear any liability and will not make representations or warranties, express or implied, as to the accuracy or completeness of this current report.

In particular, the Manager will not be liable to anyone other than Echo, the Company and DKR Echo Investment sp. z o.o. ("Selling Shareholder") in the context of providing protection to its clients, nor will the Manager provide advice on the offer or sale of shares covered by this current report ("Offered Shares") or on other matters referred to herein, to entities other than Echo, the Company and the Selling Shareholder.

The distribution of information about the offer or sale of the Offered Shares, including this current report, may be restricted by law in certain jurisdictions. Echo, the Company, the Selling Shareholder, the Manager or their related entities have not taken any action that could or is intended to enable the offering or sale of the Offered Shares in any jurisdiction, or to result in the possession or dissemination of any offer or advertising material regarding the Offered Shares, including this current report, in any jurisdiction where action is required for this purpose.

This current report does not identify or suggest, and is not intended to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Offered Shares. Any investment decision to subscribe for or purchase the Offered Shares as part of the offer or the sale of such shares, must be made solely on the basis of publicly available information that has not been independently verified by the Managers.

This current report does not constitute a recommendation regarding the investor's decision on the offer or sale of the Offered Shares. Each investor or potential investor should conduct his or her own research, analysis and evaluation of publicly available information, including that described in this current report.