Investment in Moto44 Sp. z o. o., a Poznań-based company

Carpathia Capital S.A. acquired bonds of total value of PLN 1.1 M. These one-year bonds include the Bondholder right to require payment of the Issuer’s liabilities by converting them into shares representing 26.25% of the share capital of Moto44. Additionally the bonds are collateralized by real estate mortgages. Moto44 Sp. z o.o. operates in the automotive sector in Poland and has been selling and servicing new and used motorcycles since 2013. Moto44 is a dealer for the following brands: TRIUMPH, APRILIA, MV AGUSTA, HUSQVARNA, MOTO GUZZI for which it also provides authorized services. In total the Company has dozens of brands of motorcycles in its commercial offer. Moto44 also sells professional DAINESE motorcycle clothing as well as professional accessories that increase safety of the motorcyclists. In 2014, the first complete year of selling motorcycles, the Company reached PLN 4.18M in revenues, operating profit in the amount of PLN 0.20M and net profit of PLN 0.15M. According to the investment agreement in 2015 Moto44 expects to reach revenues of no less than PLN 8.0M, operating profit of no less than PLN 0.47M and net profit of no less than PLN 0.35M. Whereas in 2016 it expects to reach revenues of no less than PLN 12.0M, operating profit of no less than PLN 0.72M and net profit of no less than PLN 0.60M. If Moto44 does not fulfil the above described expectations, the Company will have the right to take up additional shares of the Issuer, regardless of the exercise of the right of conversion. The funds raised through the issue will be used for the purchase of land property with the aim of building a modern showroom offering new and pre-owned motorcycles, along with an extensive service facilities. The bonds were offered by INC Brokerage House. The parties intends to list shares of a company created through conversion of Moto44 into a joint stock company in the alternative trading system on the NewConnect market with support from INC S.A. acting as an Authorized Advisor.
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