PGM and Niewiadow military create joint venture, obtain PLN 250 mln in financing

It has been announced that a joint venture agreement has been concluded between Grupa Niewiadow (GN), its precise equipment production unit Zaklady Sprzetu Precyzyjnego Niewiadow (ZSP), EG Polska and Forum 119 Closed-End Investment Fund (Fidera).

Based on the provisions of the JV agreement, the PGM capital group will obtain financing from Fidera, thanks to which ZSP will commence the implementation of a project to produce 155 calibre ammunition, the key element of which will be the construction and launch of a modern reloading factory with a planned production capacity of 120,000 units per year, with the possibility of expansion to 180,000 units per year.

The reloading factory will be built as part of a joint investment by ZSP and Fidera in EG Polska, with ZSP also providing personnel and technical support for the project.

PGM stressed in the release that after the conclusion and execution of the JV agreement, ZSP will remain 100-percent owned by the Niewiadow group, and GN will be 100-percent owned by PGM. EG Polska will remain a subsidiary of PGM.

"The management board of Polska Grupa Militarna points out that carrying out of the JV agreement should significantly contribute to the performance of the plan to transfer the company's shares to the regulated market of the Warsaw Stock Exchange," PGM said in the statement.

Polska Grupa Militarna is a Polish military capital group of companies and technological projects in the field of advanced civil and military technologies, listed on the New Connect stock exchange.

Grupa Niewiadow is a holding company comprising a group of companies involved in the production and supply of ammunition, weapons, special vehicles and military equipment.

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