Pledge created on assets of the Issuer's subsidiary undertaking

Legal basis

Art. 56.1.2 of the Act on Public Offering - current and periodic information

The Management Board of Rank Progress S.A. (the 'Issuer') reports that on 9 December 2015 it became aware of a decision of the District Court for the Capital City of Warsaw in Warsaw, XI Commercial Division of Register of Pledges on the entry of a registered pledge made on 2 December 2015 on all movable tangible items and property rights belonging to the Issuer's subsidiary undertaking - Progress XXIII Sp. z o.o. having its registered seat in Warsaw (the 'Progress XXIII', 'Pledgor') (excluding rights to the Pledgor's bank accounts and rights which are the subject of the agreement on assignment of rights concluded between the Bank and the Pledgor, as well as real property and other rights that in the light of law cannot be encumbered with a registered pledge) being a group of items and rights of variable composition constituting organizational economic whole.

The pledge was created with the maximum security value of up to EUR 30,000,000.00 (representing the equivalent of PLN 128,445,000.00 according to the average exchange rate of NBP /the National Bank of Poland/ effective on 2 December 2015).

The pledge was created to secure the repayment of liabilities to Bank BPH S.A. having its registered seat in Gdańsk (the 'Bank') arising from the loan agreement concluded between the Bank and Progress XXIII, of which the Issuer informed in its Current Report No. 50/2015 of 25 November 2015.

The assets on which the above registered pledge was created in favour of the Bank are considered significant, as the value of the security exceeds the equivalent of EUR 1 million.

According to the Issuer's best knowledge there are no links between the Issuer and its management or supervisory staff and the Bank for which the pledges were created and its management staff.

Legal basis

Art. 5.1.1 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent the information required under the provisions of the law of a non-member state.

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