Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. („JSW”, „Company”) hereby reports that today it adopted a resolution for JSW to buy series D Investment Certificates and subsequent series issued by JSW Closed-End Stabilization Investment Fund („FIZ”) for a total target amount not to exceed PLN 5 billion.
It is necessary to obtain the Company’s corporate consents to execute this legal action. At the same time, the Company reports that the foregoing activity is not equivalent to contributing cash to the Stabilization Investment Fund (FIZ). The amount of the contribution to the FIZ will depend in every instance on the Company’s financial capabilities and the financial surpluses recorded, which will be preceded by separate decisions made by the Management Board and Supervisory Board, and the Company will report them in separate current reports.
The Company also reports that the net asset value of FIZ as at 31 December 2021 was PLN 507.7 million. In April 2022 FIZ investment certificates were issued for a total of PLN 700 million, which the Company reported in current reports no. 9/2022 and 10/2022. In this manner the net asset value of the FIZ has grown to above PLN 1.2 billion.
The foregoing decisions related to rebuilding the resources of FIZ aim to ensure the ability to leverage the FIZ as a cash security buffer during a downturn of market conditions and/or in a period in which the Company generates negative cash flow, and also to provide financial support for the spend planned in the long and medium term related to the performance of investments of strategic importance for the Company and the JSW Group. That is why the information related to rebuilding the FIZ resources has been recognized as being material.
Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.