ESPI 8/2021 Adoption by the General Meeting of Shareholders of the Company of the Incentive Programme IV for the years 2021 – 2023

With reference to the ESPI report no 2/2021, the Management Board of IMS S.A. (“Company”, “Issuer”) informs that on March 2, 2021. The Extraordinary General Meeting of the Company, by Resolution No. 7, adopted the Incentive Scheme IV for 2021 – 2023, based on management options, for the members of the Management Board, managers, employees and associates of the companies of the IMS Capital Group, and approved the Regulations of the Scheme (“Regulations of the Incentive Programme IV”; “Regulations IV”).

The aim of Incentive Programme IV, addressed to the Members of the Management Board of IMS S.A. as well as to the managers, employees and co-operators of the companies in the IMS S.A. Capital Group, is to create an additional, strong motivating tool for the achievement of very ambitious goals through such actions as the acquisition of highly valuable entities, the generation of high sales from the current products and services, and the acquisition of new customers and new markets, which should have a significant effect on the share price of IMS S.A. The creation of significant incentives for the members of the Management Board, managers, employees and associates of the IMS Group to create solutions that improve the financial performance of the IMS Group and the strong association of the best personnel with the companies of the IMS Group, which becomes even more important in view of the SARS-CoV-2 coronavirus pandemic and its impact on the economic reality in Poland and worldwide, should lead to the implementation of ambitious plans to rebuild the revenues and profits of the IMS Group and, as a result, to an increase in the value of IMS S.A. shares.

The Incentive Programme IV provides for obtaining the right to acquire, by the persons participating in it, for a total of not more than 2,000,000 shares of a new series (which accounts for a maximum of 6.36% of the current share capital during 3 years of the Incentive Programme IV), on condition that these persons meet the criteria set forth in the Programme IV Regulations, at the issue price equal to the arithmetic mean of the closing prices of the shares of IMS S. A. on the Warsaw Stock Exchange in the period 01.04.2020-31.12.2020 taking into consideration 80% discount, i.e. the issue price of PLN 0.51 per share.

The general criterion for the acquisition of the right to subscribe for shares for a given financial year during the period 2021 – 2023 (“acquisition period”) for all participating persons is that they have been in a business relationship with one of the IMS Group companies for at least three months during the relevant acquisition period and that the IMS Group has achieved the EBITDA results for each year of the Scheme as set out in the Incentive Scheme IV Regulations. The detailed criterion is the significant influence of the participating persons on the activity of the Group’s companies, the assessment of which is performed by the Supervisory Board, and in the case of persons who are not members of the Management Board, the Supervisory Board’s assessment will be preceded by a written motion of the Management Board justifying the selection of a given person. The Supervisory Board may deviate from the general criterion mentioned above on the condition of a particularly significant impact of the participating person or persons on the financial results of the Group. In the case described in the preceding sentence, the Supervisory Board may grant a maximum of 300,000 Warrants in total in any given acquisition period (15% of the total pool of Programme IV).

The right to acquire shares under Incentive Programme IV will be exercised in the form of subscription warrants issued by the Company. One warrant will entitle to acquire one share. Participants of Incentive Programme IV will be obliged not to sell acquired shares (lock – up) for 18 (eighteen) months from 31 July of the year following the given purchase period.

ESPI 7/2021 Information on transactions on shares of the Company

Information art. 19 MAR – DOWNLOAD

The Board of Directors of IMS S.A. informs that on 18 February 2021 it received notifications under Article 19(1) of the Market Abuse Regulation from a person closely related to the President of the Board of the Company – regarding the disposal shares of IMS S.A.

The notifications constitute attachments to this report.

ESPI 6/2021 Convening the Extraordinary General Meeting of IMS S.A. for 02 March 2021

The Management Board of IMS SPÓŁKA AKCYJNA with its registered office in Warsaw (address: ul. Puławska 366, 02-819 Warsaw), entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw, Poland, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw in Warsaw, XIII Commercial Division of the National Court Register under the number KRS 0000278240, REGON 016452416, NIP 5252201663, with the share capital of PLN 628 481.72, paid in full (hereinafter referred to as: The “Company”), acting pursuant to Article 399 § 1 of the Commercial Companies Code in connection with § 10.3 (first sentence) of the Company’s Articles of Association, convenes for 02 March 2021 the Extraordinary General Meeting of the Company to be held at the Company’s registered office in Warsaw at ul. Puławska 366, for 12:00.

The agenda of the Extraordinary General Meeting of the Company is as follows:

  • Opening of the Extraordinary General Meeting of the Company,
  • Election of the Chairperson of the Extraordinary General Meeting of the Company,
  • Drawing up the attendance list and stating the correctness of convening the Extraordinary General Meeting of the Company and its ability to adopt resolutions,
  • Election of the Vote Counting Committee,
  • Adoption of the agenda of the Extraordinary General Meeting of the Company,
  • Adopting resolution on redemption of the Company’s own shares.
  • Adoption of a resolution on lowering the amount of the Company’s share capital following redemption of the Company’s own shares,
  • Adoption of a resolution on authorizing the Company’s Management Board to complete the acquisition of the Company’s own shares on the basis and within the limits of the authorization granted by resolution No. 10 of the Extraordinary General Meeting of Shareholders of IMS Spółka Akcyjna with its registered office in Warsaw of 21 January 2020
  • Adoption of a resolution on the adoption of the Incentive Scheme for the members of the Management Board, managers, employees and co-operators of the companies of the IMS Capital Group for the years 2021-2023 and approval of the Incentive Scheme Regulations IV,
  • Adoption of a resolution regarding the issue of registered series D subscription warrants, with the simultaneous exclusion of the pre-emptive rights of the Company’s existing Shareholders to series D subscription warrants,
  • Adoption of a resolution on a conditional increase in the share capital of the Company through the issue of series D shares, with simultaneous exclusion of the pre-emptive rights of the existing shareholders of the Company, and on the authorisation of the Company’s Management Board to determine the uniform text of the Articles of Association of the Company, taking into account the increase in the share capital in connection with the acquisition of series D shares,
  • Adoption of a resolution on amending the Company’s Articles of Association,
  • Adoption of a resolution on establishing and adopting the uniform text of the Articles of Association of the Company,
  • Free queries and requests,
  • Closing of the Extraordinary General Meeting of the Company.

ESPI 5/2021 Correction of an Auditor’s Error in the Review Report on the Interim Condensed Consolidated Financial Statements of the IMS Group for the period 1 January – 30 June 2020.

The Management Board of IMS S.A. informs that on 03.02.2012 received Certified Auditor’s correction to the “Report of the independent certified auditor on the review of the interim condensed consolidated financial statements of the IMS Spółka Akcyjna Capital Group” dated 2 September 2020.

The correction applies only to the form of the document of the above Report and it results from the application in the Report of the current report templates published by the Polish Chamber of Certified Auditors. The report in the scope of the expressed opinion from the review has not changed.

The interim condensed consolidated financial statements of the IMS Spółka Akcyjna Capital Group for the period 1 January 2020 – 30.06.2020 and the Interim Condensed Consolidated Financial Statements of the IMS Group for the period 01.01.2020 – 30.06.2020 and the Semi-Annual Report on the Activity of the IMS Group have not changed in any element.

 

Detailed legal basis:

  • 15, item 4 in connection with §10 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.

ESPI 4/2021 Signing a significant investment agreement–an update

Management Board of IMS S.A. (“The Issuer”), with reference to the current report No. 34/2020, informs that on 29 January 2021 a foreign investor paid up to the bank account of the subsidiary Closer Music Sp. z o.o. the amount of EUR 140 thousand for 4.9% of shares, thus implementing the investment agreement signed on 21 December 2020. The funds raised will be used for the production of further high quality music and activities in Western Europe aimed at commercialising Closer Music’s libraries.

The Board of Directors of the subsidiary will take the necessary formal steps in the coming days to register the share capital increase by the newly issued shares.

ESPI 3/2021 Legal finalisation of the judgement in the case for revocation of the resolutions of the Extraordinary General Meeting of 31 July 2018

Management Board of IMS S.A. (“the Company”), with reference to the report 46/2018 dated 07.09.2018 on bringing by a shareholder an action for revocation of resolutions no. 4 and no. 5 of the Extraordinary General Meeting of the Issuer dated 31.07.2018 and the report 33/2020 dated 10.11.2020 on dismissal of the above-mentioned action, announces that it has received information on the plaintiff’s failure to file an appeal against the judgement issued by the District Court in Warsaw, XVI Commercial Department  (ref: XVI GC 836/18), which is the same as the above-mentioned judgement becoming final.

 

Detailed legal basis:

  • 19, item 1 in connection with §10 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.

ESPI 2/2021 Adoption by the Supervisory Board of the Company of the Incentive Programme IV for the years 2021 – 2023

Management Board of IMS S.A. (“Company”, “Issuer”) informs that on 23 January this year. The Supervisory Board adopted the Rules of the “Incentive Scheme IV for 2021 – 2023, for the members of the Management Board, managers, employees and associates of the companies of the IMS Capital Group” (“Regulations of Incentive Programme IV”; “Regulations IV”), based on managerial options. The aim of Incentive Scheme IV, addressed to the Members of the Management Board of IMS S.A. as well as to the managers, employees and co-operators of the companies in the IMS S.A. Capital Group, is to create an additional, strong motivating tool for the achievement of very ambitious goals through such actions as the acquisition of highly valuable entities, the generation of high sales from the current products and services, and the acquisition of new customers and new markets, which should have a significant effect on the share price of IMS S.A. The creation of significant incentives for the members of the Management Board, managers, employees and associates of the IMS Group to create solutions that improve the financial performance of the IMS Group and the strong association of the best personnel with the companies of the IMS Group, which becomes even more important in view of the SARS-CoV-2 coronavirus pandemic and its impact on the economic reality in Poland and worldwide, should lead to the implementation of ambitious plans to rebuild the revenues and profits of the IMS Group and, as a result, to an increase in the value of IMS S.A. shares.

The Incentive Programme IV provides for obtaining the right to acquire, by the persons participating in it, for a total of not more than 2,000,000 shares of a new series (which accounts for a maximum of 6.36% of the current share capital during 3 years of the Incentive Programme IV), on condition that these persons meet the criteria set forth in the Programme IV Regulations, at the issue price equal to the arithmetic mean of the closing prices of the shares of IMS S. A. on the Warsaw Stock Exchange in the period 01.04.2020-31.12.2020 taking into consideration 80% discount, i.e. the issue price of PLN 0.51 per share. The general criterion for the obtaining of the right to acquire shares for a given financial year in the period 2021 – 2023 (“acquisition period”) for all participating persons is to remain in a business relationship with one of the IMS Capital Group companies for at least three months in the given acquisition period and for the IMS Capital Group to achieve the EBITDA results specified in the Programme IV Regulations. The detailed criterion is the significant influence of the participating persons on the activity of the Group’s companies, the assessment of which is performed by the Supervisory Board, and in the case of persons who are not members of the Management Board, the Supervisory Board’s assessment will be preceded by a written motion of the Management Board justifying the selection of a given person. The right to acquire shares under Incentive Programme IV will be exercised in the form of subscription warrants issued by the Company. One warrant will entitle to acquire one share. Participants of Incentive Programme IV will be obliged not to sell acquired shares (lock – up) for 18 (eighteen) months from 31 July of the year following the given purchase period. At the same time, the Company’s Supervisory Board recommended to the Issuer’s Management Board that the Company’s General Meeting be convened in the first quarter of 2021, with the agenda including: 1) Adoption of the “Incentive Scheme for members of the Management Board, managers, employees and associates of the companies of the IMS Capital Group for 2021-2023” and approval of the “Rules of the Incentive Scheme for 2021-2023”; 2) Adoption of the issue of registered subscription warrants, with simultaneous deprivation of the pre-emptive rights of the existing Shareholders of the Company to the subscription warrants; 3) Conditional increase in the share capital of the Company through the issue of shares of a new series with simultaneous deprivation of the pre-emptive rights of the existing Shareholders of the Company to the shares and authorization of the Management Board to determine the uniform text of the Articles of Association of the Company taking into account the increase in the share capital in connection with the acquisition of the above 4) Amendments to the Company’s Articles of Association in relation to the conditional share capital increase; 5) Establishing the uniform text of the Company’s Articles of Association. The condition for the entry into force of Incentive Programme IV is the effective adoption of the above mentioned resolutions by the General Meeting of the Company.

At the same time, the Management Board of the Company announces that it will not recommend to the Supervisory Board the allocation of shares for 2020 under Incentive Programme III for the years 2018 – 2020. Thus, 500,500 shares out of the 1,500,000 available for the entire Programme III have been used.

ESPI 1/2021 Dates of publication of periodic reports in 2021

The Board of Directors of IMS S.A. (the “Company”, the “Issuer”) hereby announces the dates of publication of periodic reports in the financial year 2021:

  1. Consolidated quarterly reports:

– the quarterly report for Q1 2021 – 27.05.2021

– the quarterly report for Q3 2021 – 25.11.2021.

  1. The consolidated interim report for H1 2021 – 21.09.2021
  2. The annual report – separate – for 2020 – 28.04.2021
  3. The annual report – consolidated – for 2020 – 28.04.2021.

The Board of Directors of the Company informs that pursuant to Article 6 paragraphs 1 and 3 the consolidated quarterly reports and the consolidated interim report will include the quarterly financial information and the condensed interim financial statements respectively.

At the same time, the Board of Directors of the Company informs that pursuant to Article 79 paragraph 2 the Issuer will not publish quarterly reports for Q4 2020 and Q2 2021.

 

Detailed legal basis: Article 80 paragraph 1 of the Regulations of the Minister of Finance of 29 March 2018 on current and periodic information published by issuers of securities and conditions for recognition as equivalent the information required by laws of non-EU member states.

ESPI 34/2020 Signing a significant investment agreement

Management Board of IMS S.A. (“Issuer”) informs that on 20th December this year an investment agreement was signed concerning the acquisition of capital in the subsidiary Closer Music Sp. z o.o. (‘the Company’, ‘Closer Music’), dealing with the development and commercialisation of its own music libraries. The Company will issue and sell to a foreign investor shares representing 4.9% of the share capital (including the issue) for EUR 140 thousand. The estimated valuation of 100% of Closer Music shares is therefore PLN 12.7m. The parties have set the deadline for the realisation of the investment at the end of January 2021. The investor also holds an option to purchase additional 2.1% of shares (the number of shares calculated as at December 2020) for the price of EUR 60,000 over the next two years.

Acquisition of the aforementioned investor, apart from capital for the development of music libraries, is important for further development of Closer Music. This investor – a manager with many years of experience in key positions in the largest European companies in the sensory marketing industry and, consequently, with broad contacts in the industry – will engage in the sale of Closer Music catalogues to companies located in Western Europe.
 

The Agreement needs to be approved of the Issuer’s Supervisory Board and  the Closer Music General Meeting of Shareholders needs to adopt necessary resolutions for it to be implemented.  In the event of refusal to issue the necessary approval or failure to adopt resolutions, the Agreement shall be automatically terminated, and its provisions shall have no legal effect.

ESPI 33/2020 Dismissing of the legal action for revoking the resolution of the Extraordinary General Meeting of 31 July 2018

Management Board of IMS S.A. (“Company”) informs, with reference to report 46/2018 of 07.09.2018 on filing by a shareholder a legal action for revoking resolutions no. 4 and no. 5 of the Issuer’s Extraordinary General Meeting of 31.07.2018, on dismissing in full the abovementioned legal action by the District Court in Warsaw, 16th Commercial Division (file ref: XVI GC 836/18). The judgment in this case is not final.

 

Detailed legal basis:

  • 19, item 1 in connection with §10 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state.