Information on the decision to revalue assets
The Management Board of CPD S.A. with its registered office in Warsaw [hereinafter referred to as the Issuer] hereby announces that on May 28, 2026, it made the following decisions, which had a significant impact on the financial results presented in the Issuer’s financial statements prepared as at March 31, 2026:
– to adjust the fair value of the Issuer’s receivables from the Issuer’s subsidiary CPD Capital LLC [hereinafter referred to as CPDC] for loans granted for a total amount of PLN 12.57 million – to PLN 0.00; The value adjustment was charged directly to the profit and loss account [finance costs], which will result in a reduction of the consolidated net profit as of March 31, 2026, by PLN 12.57 million;
– the recognition of an impairment loss on financial assets at the CPDC level, in the form of shares held by CPDC in Jacksonville Rental Properties LLC [hereinafter referred to as JRP] and JJTA 19 Real Properties LLC [hereinafter referred to as JJTA19], for an amount of PLN 12.44 million, to PLN 0.00; the impairment loss was charged directly to the profit and loss account [finance costs], which will result in a reduction of the consolidated net profit as of March 31, 2026, by PLN 12.44 million.
The Issuer hereby declares that the decisions described above are a consequence of the situation described in ESPI Current Report No. 23/2026 dated April 23, 2026, i.e., the actions taken by Jarosław Tadla, who sold his rights in JRP and JJTA19 to CPDC, which resulted in CPDC being unable to acquire control over JRP and JJTA19.
Due to the above-mentioned situation, significant indications of permanent impairment of the acquired rights in JRP and JJTA19 were identified at the CPDC level, as well as a risk of failure to regain control over these entities. Therefore, the Management Board decided to recognize an impairment loss on these assets in their full value [100%]. Simultaneously, at the level of the parent company, i.e., the Issuer, a valuation of the loans granted to CPDC was performed. Due to CPDC’s loss of ability to generate cash flows sufficient to service its debt – resulting from the loss of control over its assets and the lack of collateral for its loans – the fair value of these instruments was estimated at zero.
The above information was deemed to meet the requirements of Article 17, Section 1 of the MAR due to the significant impact, in the opinion of the Issuer’s Management Board, of the described event on the Issuer’s financial results.
