Legal attitude: Art. 17 para. 1 MAR - confidential information.
With reference to point 4.12.2 of the Issuer's Information Document, the Management Board of Vabun S.A. with its registered office in Lublin ("Issuer", "Company") informs that as part of the implementation of the strategy described in this item, on 18 July 2018, it signed a framework agreement with an agency ("Contractor") in the scope of providing this entity for Consulting and sales services companies ("Agreement").
In cooperation, the Company sees the possibility of dynamic development of its operations, which is to be achieved primarily through entering foreign markets, which refers to the development strategy of Vabun S.A. described in paragraph 4.12.2. Of the Company's Information Document dated May 21, 2018.
Under the aforementioned Agreement, the Contractor undertook, among others, to look for new sales channels for RM Vabun brand products and carry out analyzes, consultations and business talks with contractors in the scope of retail and wholesale trade, with particular emphasis on the Issuer's product exports.
Notwithstanding the foregoing, the Contractor also undertook, inter alia, to: (a) work on the commencement and subsequent increase in sales of RM Vabun products on foreign markets, (b) take actions in the field of foreign support of the RM Vabun brand at local distributors, (c) implement a development plan on foreign markets (d) selection assortment against the competition occurring in a given market and (e) use of own experience from the markets on which it conducts its active business.
Contractor has over 10 years of experience in the range of introducing perfume and cosmetics to the markets of the Middle and Far East, Central and Eastern Europe and republics of the former Soviet Union. As part of its current activity, the Contractor successfully led to transactions with foreign contractors for leading Polish cosmetics producers. In addition, he permanently cooperates with foreign companies and brands from France, Belgium, the United States of America and the UAE.
Pursuant to the provisions of the Contract, the Contractor will be rewarded for the specific effects of the actions taken, i.e. signing contracts for the sale of the Issuer's products ("success-fee") and additionally commissioned from each completed and paid delivery.
Contract withThe contractor was concluded for an indefinite period with the option of terminating the cooperation with a 30-day notice period. In addition, the parties to the Agreement have jointly and severally reserved the possibility of concluding additional agreements, which in their content may detail the subject of the work ordered and the amount of remuneration for services rendered. The other terms of the Agreement do not differ from generally used market practices.
The Issuer's Management Board decided to publish the above information due to the fact that the conclusion of new distribution agreements, including in particular export, may affect the valuation of the Issuer's financial instruments listed in the alternative trading system. About binding effects of cooperation and concluded sales contracts. will inform you through separate stock exchange reports.
Automatic translation of the announcements.