Wikana : Significant contract executed by subsidiary

Current report 13/2018

Report date: 10 May 2018

Issuer's abbreviated name: WIKANA

Subject: Significant contract executed by subsidiary

Legal basis: Art. 17 sec. 1 MAR - inside information

Report content:

The Management Board of WIKANA S.A. ("Issuer") announces that on 10 May 2018 a subsidiary of the Issuer - WIKANA PROPERTY Sp. z o.o. BETULA Sp.k., based in Lublin ("Subsidiary") - executed a contract with a natural person trading as: ZT INVEST Zbigniew Tarłowski, based in Zamość ("Contractor"), for comprehensive development of residential multi-family building "C", together with associated infrastructure and land development ("Contract"), as the final stage of the Klonowy Park investment at ul. Sowiakowskiego in Janów Lubelski.

21 residential units and 13 garages will be developed under the stage covered by the Contract.

As per the Contract, the task will be completed by the third quarter of 2019. Remuneration for performance of the Contract is a flat fee of PLN 3 05 000 net.

The Contract provides for contractual penalties for the Contractor, including for failure to complete the Agreement within the specified deadline, failure to remove faults under warranty within the given deadline and termination of the Contract by the Subsidiary due to Contractor fault.

The Subsidiary has the right to seek supplementary compensation from the Contractor up to the amount of damages actually suffered, provided that the amount of damage exceeds the amount of contractual penalties received. The Contractor is entitled to receive a contractual penalty from the Subsidiary for withdrawal from the Contract at the Subsidiary's fault or delay in final handover. Contractual penalties may be calculated in aggregate, provided that the total does not exceed 10% of the value of the Contract.

The Contract does not contain conditions or deadlines precedent.

The other terms of the Contract do not differ from the terms typically applied to this type of agreement.

The Contract constitutes the third phase of the Klonowy Park investment in Janów Lubelski, as part of which WIKANA Group so far built residential buildings "A" and "B" with a total of 45 flats.

Agnieszka Maliszewska

Vice-President of the Management Board

Paweł Chołota

Member of the Management Board