With regard to the current report no 23/2016 of 28 June 2016 on receiving a letter with a statement of rescinding a stage 5 of an agreement on the realization of the ISOK system, the Management Board of Qumak S.A. (hereafter referred to as the “Company”) informs that on 11 October 2016 the Company has filed a claim form with the Warsaw District Court against the Institute of Meteorology and Water Management – National Research Institute and the State Treasury – National Water Management Authority (hereafter referred to as “KZGW”, “Ordering Party”) for payment to the Company an amount of PLN 29 591 747.00 with statutory interest, on the account of a remuneration for the realization of the ISOK system, on the basis of the agreement of 29 August 2013.
On 28 June 2016 the Company received from the Ordering Party a letter with a statement of rescinding by the KZGW the performance of the stage 5 of the ISOK project (the Company provided this information in the current report no 23/2016 of 28 June 2016).
The Company had questioned the effectiveness of the above-mentioned statement and called the Ordering Party to proceed with the acceptance of a subject matter of the mentioned agreement, i.e. the performed ISOK system. As it was refused, the Company has initiated a procedure of placing the performed ISOK system in a court deposit and claims from the Ordering Party the payment of remuneration.
Article 17 item 1 MAR – confidential information.