Current report no 12/2023
Published on: 7 April 2023
SUBJECT OF THE REPORT: conclusion of a significant agreement
Legal basis: Art. 17.1 MAR – inside information
Content of the report:
The Management Board of LSI Software S.A. with its registered office in Łódź (hereinafter “the Company”, “the Issuer”) hereby reports that on 5 April 2023 the Issuer concluded an agreement with BLITZ – CINESTAR d.o.o. with its registered office in Zagreb. The subject of the agreement is the supply, implementation, maintenance, and development of the POSitive® Cinema system in the CINESTAR cinema network. The agreement was concluded for an indefinite period, assuming its validity for a period of not less than 10 years, with the possibility of its extension for a further 5 years counted from the date of completion of implementation in the last of the implemented locations. The deadline for the implementation of the last cinema covered by the agreement is 1July 2024.
The estimated value of the agreement considering the supply, implementation and maintenance of the POSitive® Cinema system over a period of 10 years amounts to EUR 3.61 million, i.e. PLN 16,895,883 converted at the average exchange rate of the National Bank of Poland prevailing on 5 April 2023.
The agreement incorporates contractual penalty provisions that do not deviate from the standard penalties used in this type of agreements. The agreement does not contain other terms and conditions that deviate from those commonly used for this type of agreement.
CINESTAR is a Balkan cinema network with 28 locations spread across 4 countries: Croatia, Bosnia and Herzegovina, Serbia, and Kosovo. Currently, the network operates 182 cinema screens.
In the opinion of the Company’s Management Board, the concluded agreement shall have a positive impact on increasing the scale of operations both financially and territorially. Thus, it is a continuation of the Management Board’s strategy of increasing the scale of operations and foreign expansion of the Group.
SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Grzegorz Siewiera – President of the Management Board