Announcement.

PZ CORMAY SA (1/2019) Decision on the review of strategic options related to the construction of a new factory project.

The Management Board of PZ Cormay S.A. based in Łomiankach ("Issuer", "Company") informs that following the meeting of the Issuer's Management Board on 11/01/2019 on the status of implementation of strategic projects and their financing, the Issuer's Management Board decided to conduct a review of the options strategic issues related to the construction of the Production and Logistics Center ("CP-L Investment") on a plot of land located in the Special Economic Zone Euro-Park Mielec, Lublin subzone ("Real Property").
At the current stage of the above review, the subject of detailed considerations will be the scenario assuming the transfer of the CP-L Investment to a new location in Lublin or surrounding poviats.
One of the basic reasons for a possible change in the location of the CP-L investment are the benefits resulting from the entry into force of the Act of 10 May 2018 on supporting new investments, mainly in the form of tax exemptions for a period of 15 years.
The scenario under consideration assumes the sale of the currently owned Real Estate, the purchase of a new real estate for the purpose of completing the CP-L Investment and applying for a decision to grant support for the project in the form of CP-L Investment within the Polish Investment Zone.
The CP-L investment will be financed from funds obtained from the sale of the Diesse Diagnostica Senese S.p.A share package held by the Group. In addition, considering that the Real Property owned by the Company is connected with the implementation of the contract for co-financing the project "The first implementation for the production of diagnostic (hematological and biochemical) analyzers with a dedicated line of reagents" covered by financial support under Sub-measure 3.2. 1, whose deadline for completion is 15 April 2019, and the inability to extend the deadline for its implementation, as well as the lack of PARP's decision regarding the application submitted by the Company on May 16, 2018, to limit the scope of the project, the Company does not exclude that funds originating from from the sale of the Real Property would be partly used to return the subsidy received as part of the subsidy, which as at the date of this report is PLN 3 180 683.32, increased by interest due.
Other funds from the sale of all or part of it currently heldThe real estate would be used for at least partial financing of the purchase of a new property.
In the opinion of the Issuer's Management Board, the potential benefits of the above-mentioned scenario showing an alternative plan related to the location of a new factory could come from:
- a new support system resulting from the above-mentioned the Act on supporting new investments,
- transferring all production and trade activities to one location, which would in turn create the possibility of liquidation of the real estate assets in Lublin and Marinino belonging to the Group today,
- elimination of subsidy risks related to the aforementioned contract for co-financing in connection with the full repayment of liabilities resulting from it,
- at least partial financing of the purchase of a new, cheaper plot for the purpose of implementing the CP-L Investment.
Possible decisions regarding the analyzed scenario, including its individual aspects, may take place in the first quarter of this year.

Source: company website, investor relations, current and periodic reports.

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Company information
Company name:PZ Cormay SA
ISIN:PLCMRAY00029
NIP:1181872269
Adress: ul. Wiosenna 22 05-092 Łomianki
Phone:+48 22 7517910
website:www.pzcormay.pl

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