PIT-RADWAR Receives Support From The Polish Treasury. Increase of the Polish Armament Group’s Share Capital.

Image Credit: PIT-RADWAR.
Image Credit: PIT-RADWAR.

Polish treasury subscribed the shares of the new issue in an increased share capital of the Polish Armament Group (Polska Grupa Zbrojeniowa S.A., PGZ). The funds obtained through the issue will be used to implement an innovative project in the field of radar technology.This is the second tranche of assistance provided by the Polish Ministry of Treasury, supporting a programme which is being realized by the PIT-RADWAR company which acts as a part of the Polish Armament Group.

The support is going to be used to assist PIT-RADWAR in completing the project known as “Construction and equipment of a military radars and EMC antennas testing station in an anechoic chamber”. The initiative is related to the basic security interest of the Republic of Poland. The schedule assumes that the project is going to be finalized by the end of 2016.

The investment, which is to be used to fund the anechoic chamber, will significantly increase the PIT-RADWAR company’s potential, allowing the entity to implement the key research and development initiatives and prepare a new generation of products awaited by the military. The anechoic chamber is an investment with an exceptionally high level of technological advancement. It constitutes an example of innovation which is going to be consequently implemented by our PGZ S.A. Group.

President Arkadiusz Siwko

The agreement. signed by and between the Polish Armament Group and the Ministry of Treasury, back in 2015, the value of which is defined as PLN 44,000,000, comes in a form of subscription of shares within the increased share capital of the PGZ S.A. group. It is assumed that increase of the share capital, with a specified amount, and in line with the investment schedule, is going to be realized in three separate stages. The initial tranche of capital increase, in an amount of PLN 12,302,400, has been paid to the company on 4th September 2015, and it has been allocated to the relevant areas already. The new capital will be used to finance the payment connected to procurement and installation of yet another set of devices contained within the anechoic chamber.

The new agreement between the Polish Armament Group and the Ministry of Treasury concerns acquisition of 20,420,300 shares of the new J-series issuance by the Treasury, with nominal value of PLN 1.00 per each share, at issue price of PLN 1.00 each, within the increased share capital of the Polska Grupa Zbrojeniowa S.A. [Polish Armament Group] company. The shares are acquired via a private placement addressed to the Treasury, in exchange for the second tranche of support, in an amount of PLN 20,420,300, provided by the Ministry, with the use of the Entrepreneurs’ Restructuring Fund, on the basis of an agreement signed by and between the Ministry of Treasury and the Polish Armament Group on 29th July 2015.

Acquisition of the J-series shares will not lead to any significant changes in the PGZ’s ownership structure. Share capital of the company will be contained in an amount of PLN 5,342,568,966 now, and it is going to be divided into 5,342,568,966 inscribed shares, with a nominal value of PLN 1 each.

Other companies forming the Polish Armament Group also use a similar form of support. This concerns the following entities: Mesko S.A, Huta Stalowa Wola S.A. and Nitro-Chem S.A.