Monbat : NOTIFICATION UNDER ITEM 4.20.1 OF THE DOCUMENT FOR THE OFFERED SECURITIES OF THE ISSUE OF CONVERTIBLE CORPORATE BONDS WITH ISIN BG2100023170 ISSUED BY MONBAT AD

NOTIFICATION UNDER ITEM 4.20.1 OF THE DOCUMENT FOR THE OFFERED SECURITIES OF THE ISSUE OF CONVERTIBLE CORPORATE BONDS WITH ISIN BG2100023170 ISSUED BY MONBAT AD

According to the Minutes dated 22.01.2024 of the General Meeting of the Bondholders of the issue of convertible corporate bonds with ISIN BG2100023170 issued by "Monbat" AD, the payment of the second installment of the principal of the issue in the amount of EUR 8,404,500, representing 30% of the total raised amount of the issue is to be made after 60 calendar days starting from 20.01.2024. The decision taken at the General meeting of the bondholders held on 22.01.2024 to postpone the second installment of the bond issue, by 60 calendar days is necessary to provide enough time for the use of the loan agreed with the financing Monbat AD banking institution for the refinancing of the payment. According to the loan agreement, a pre-condition for the use of the loan is to provide the necessary collateral, which is free from encumbrances in third parties. Part of this security is a mortgage on immovable property used to secure debts owed to the another lending institution servicing Monbat AD, which have been repaid or which Monbat AD has declared its willingness to repay early, of for which the company has notified the bank in writing of its intention. In consideration of the longer than originally expected time for the competent authority of the creditor bank (based abroad) to make a decision on the removal of the encumbrances, Monbat AD is not yet in a position to use the agreed loan which should be used to pay the second principal installment the issue. At this moment, the decision to remove the encumbrances has already been taken by the competent authority of the Bank and technically the removal process has been initiated, with the relevant documentation to be signed. In consideration of the technical time required for the removal of the encumbrances and securing the real estate as collateral free from encumbrances to the financing institution Monbat AD, and in regard of the time required for the transfer of the money from Central Depository AD to the bondholders, management expects that the Company will be in a position to pay the second installment on the convertible bond issue no later than 15 April 2024.