Reports

The board of HELIO S.A. informs that on 17.09.2013 HELIO S.A. concluded an agreement of transfer of title to secure items specified as to their kind with Bank Handlowy w Warszawie S.A. based in Warsaw (“Bank”).

The agreement of transfer of title was concluded to secure the Bank’s claims against HELIO S.A. on account of credit on the current account to the amount of PLN 23 500 000, of which the Issuer informed in a current report no. 2/2013 of 17.09.2013.

The agreement concerns the transfer of title to stock owned by the Issuer stored in “the raw material warehouse” located in Brochów 119, 05-088 Brochów. The book value of the assets subject to the transfer of title in the Issuer’s ledgers on 21.08.2013 was PLN 11 144 584.15. The agreement was concluded subject to the condition that if the credit with due interest and costs is paid within the time limit stipulated in the credit agreement, the transfer of title shall expire, and the transferring party (the Issuer) shall be again the owner of the items.

Under the agreement of transfer of title, by the time the call is received by the Issuer to issue all or part of the transferred subject, the Issuer retains the transferred subject in his possession as taking in lending. The Issuer may use the items, as well as to dispose of them in a manner appropriate to the characteristics and economic destiny. The Issuer is entitled to the beneficial use of the items. In the case of sale or another, which is consistent with the normal practice of the host, disposal of all or part of the transferred subject, the Issuer shall promptly replace or supplement the transferred subject by things of the same species and the same quality, so that at any time the market value of the transferred subject shall be not less than PLN 9 000 000 or to prompt establishment of the Bank other security acceptable to the Bank.
There are no connections between the Issuer and its executive and supervisory bodies and the entity for the benefit of whom the transfer of title took place. The criterion for recognizing assets as assets of material value is exceeding 10% of sales revenues of the Issuer for the previous four financial quarters. The value of the transferred subject exceeds the amount of 1,000,000 EUR based on the average rate stated by National Bank of Poland on the date of signing the agreement.