ADIUVO INVESTMENTS SA (18/2018) Information on the intention to include in the financial statements for 2017 revaluation write-offs the value of assets

Legal basis: Article 17 para. 1 MAR - confidential information. The Management Board of Adiuvo Investments S.A. (Issuer, Company) informs that in the course of work on the preparation of financial statements for 2017, after performing the impairment test under IAS 36 Impairment of assets and accounting: • intangible assets recognized in the consolidated financial statements of the Capital Group Adiuvo Invesments ("Capital Group") in connection with the takeover of control over Algaelabs Sp. Z oo ("Algaelabs") in 2014; • the value of shares in Algaelabs in the Issuer's separate statements; on 12 April 2018 a decision was made to write down the aforementioned assets, which is related to the impairment of the above-mentioned assets. assets related to the change in the assessment of the attractiveness of the project's prospects functioning within the aforementioned subsidiary, related to the lack of satisfactory performance developed by Algaelabs for the installation of bioreactors for the cultivation of algae Haematococcus pluvialis. The Issuer reminds that Algaelabs is a project belonging to the group of so-called nutraceutical projects at the pre-commercialization stage of development. As at the date of this current report, the Issuer holds 65.85% of shares in the share capital of Algaelabs and 65.85% of the total number of votes in this entity. The write-down referred to above will be included in the appropriately consolidated financial statements of the Capital Group for 2017 in the item other operating costs in the amount of PLN 27,595 thousand. PLN in the Issuer's separate financial statements for 2017 in the amount of PLN 1 385 thousand The Issuer draws attention to the fact that the above one-off operation is of an accounting nature and does not affect the liquidity situation of the Company and its Issuer's Capital Group. At the same time, the Issuer informs that also on April 12, 2018, the analysis of the effects of the change in the accounting for the value of shares in subsidiaries in the separate financial statements of the Issuer was completed. The above-mentioned change concerns the change in the presentation of the value of shares in subsidiaries from fair value to the historical cost. The fair value of shares used in the previous accounting approach was estimated using the discounted cash flow method, in the approachmarket and cost depending on the development stage of the subsidiary. At the same time, due to: (i) a reduction in the total fair value of subsidiaries to the value of the Issuer's market capitalization, which, in the opinion of the Management Board, due to low liquidity and the possibility of significant fluctuations in the quotation prices, can temporarily even in short- and medium-term intervals do not properly reflect the fair value of the Issuer; (ii) limited liquidity of shares in subsidiaries listed on organized markets; (iii) volatility of financial projections and uncertainty and volatility of assumptions (including discount rates) being the basis for the valuation using the discounted cash flow method The Management Board of the Company has decided to change the presentation method of the value of shares to the historical value of the investment, ie the historical acquisition cost method, which in the Company's opinion is more adequate for, mainly, the research profile of the company that belong to the Adiuvo Capital Group. In the Issuer's opinion, the presentation of the value of shares in subsidiaries in the historical cost will be, as a uniform solution, more appropriate for presenting the book value of individual subsidiaries, which is characterized by lower volatility of individual assets assigned to developed research projects, in particular through the prism of research activity and uncertainty regarding assumptions adopted in the course of making a valuation based on fair value. As a consequence, the Issuer's Management Board decided to apply a more objective measure of valuation of shares in subsidiaries which is the historical acquisition cost method. Having the above in mind, the Issuer informs that in connection with the intended inclusion in the financial statements for 2017 According to the historical cost method, a one-off decrease in equity under revaluation of available-for-sale financial assets and a deferred income tax liability (liabilities) and investments in subsidiaries (on the asset side) in the amount of PLN 193.3 million will occur. to the Issuer's separate financial statements for 2016. At the same time, in connection with the factors described above, the Issuer hereby provides initial and separate financial statements.consolidated selected financial data for 2017 The Issuer informs that detailed information on the financial results for 2017 will be provided in the periodic reports of the Company and the Issuer's Capital Group, respectively. period.

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Company information
Company name:Adiuvo Investments SA
Adress: ul. Słomińskiego 15/509 00-195 Warszawa
Phone:+48 22 3983902

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