ESPI Current Report, No. 4/2022, Deciding on the selection of an entity and commencing negotiations on an exclusive basis for the acquisition of assets and competencies for the production of nutraceuticals and dietary supplements of MEDIAN POLSKA S.A. (PLMDNPL00013)

13-04-2022 14:59:19 | Current | ESPI | 4/2022

Legal basis
Article 17 (1) MAR – confidential information.
Contents of the report:

The Management Board of Median Polska S.A. with its seat in Myslowice _hereinafter: the Company_ in reference to the ESPI report 12/2021 dated December 13, 2021, in which it informed about the decision to start talks with two independent entities on the development of the conducted business informs that today it has decided to select an entity and start negotiations on an exclusive basis on the acquisition of assets and competences to conduct business in a new area. The Board of Directors indicates that further negotiations will be conducted with an innovative company engaged in contract manufacturing of nutraceuticals and dietary supplements. This company successfully offers private label products in 25 countries, including Slovakia, the Czech Republic, Slovenia, Portugal, the Netherlands, Germany, Spain, France, South Africa and New Zealand. The company is in the process of making an investment related to the implementation of a fully automated line for the production of jelly beans, which, once operational, will result in a multiple increase in processing capacity allowing for an increase in sales, which should consequently translate into an improvement in operating profit. In addition, it has a research and development department, allowing it to develop its own recipes, which will further increase the assortment of its own brands.
The Company’s Management Board will report on the results of the ongoing negotiations in the form of current reports, in accordance with the applicable legal regulations. The Company’s Management Board assumes that if an agreement is reached _negotiations should be finalized by April 30, 2022_, it will propose to shareholders to change the Company’s business focus and conclude an agreement or agreements to acquire assets _ownership rights in this entity in exchange for new issue shares of the Company_ and competencies.

As a result of the analysis of possible directions of development, the Company’s Management Board believes that starting operations in a new area is the most advantageous solution in the Company’s current situation and can contribute to the Company’s development and thus increase its value for shareholders.

• Martyna Serafin – President of the Management Board