Report 1/2017: Topic Change in the structure of the Issuer’s share capital

Preparation date: 2017-01-09

Current Report no. 1 / 2017

Abbreviated name of the issuer: Abadon Real Estate S.A.

Topic Change in the structure of the Issuer's share capital

Legal grounds: Art. 56 sec. 1 item 2 of the Offer Act - current and periodic information

Contents of the report:

Management Board of the Company trading under the name ABADON REAL ESTATE S.A. in Bielsko-Biała (the "Issuer"), with reference to the current report of the Issuer no. 34/2016 of 27 September 2016 informs you that today, i.e. on 9 January 2017 it learnt that District Court in Bielsko-Biała, VIII Commercial Division of the National Court Register on 4 January 2017 made an entry in the Register of Entrepreneurs of the National Court Register, registering modifications in the Issuer's articles of association resulting from resolution no. 6 of the Extraordinary Meeting of the Issuer's Shareholders of 27 September 2016. The subject matter of the aforesaid resolution was to order the structure of the Issuer's share capital in such a manner that marking of Issuer's shares was modified as follows:

1. the existing registered shares class B, numbers from B000001 to B600000 are marked as registered shares class A, numbers from A400001 to A1000000;

2. all the existing bearer shares class C, D, E, F, G, H, I, J and K are marked as bearer shares class B;

a) the existing registered shares class L, numbers from L0000001 to L6591238 are marked as registered shares class C, numbers from C0000001 to C6591238;

1. the existing registered shares class M, numbers from M00000001 to M15249142 are marked as registered shares class D, numbers from D00000000 to D15249142;

   The above modifications result from registering modification of § 4 sec. 2 of the Issuer's Articles of Association in the following scope:

   Previous wording:

   'The share capital is divided into:

2. 400,000 (four hundred thousand) class A registered shares of the nominal value 1.00 PLN (one zloty) each,

3. 600,000 (six hundred thousand) class B registered shares of the nominal value 1.00 PLN (one zloty) each,

4. 400,000 (four hundred thousand) class B ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

5. 400,000 (four hundred thousand) class D ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

6. 50,000 (fifty thousand) class E ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

7. 800,000 (eight hundred thousand) class F ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

8. 850,000 (eight hundred and fifty thousand) class G ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

9. 1,300,000 (one million three hundred thousand) class H ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

10. 472,380 (four hundred and seventy-two thousand three hundred and eighty) class I ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

11. 480,000 (four hundred and eighty thousand) class J ordinary bearer shares of the nominal value 1.00 PLN (one zloty) each,

12. 474,762 (four hundred and seventy-four thousand seven hundred and sixty-two) class K bearer shares of the nominal value 1.00 PLN (one zloty) each,

13. 6,591,238 (six million five hundred and ninety-one thousand two hundred and thirty-eight) class L registered shares of the nominal value 1.00 PLN (one zloty) each,

14. "13) 15,249,142 (fifteen million two hundred and forty-nine thousand one hundred and forty- two) registered shares class M, of the nominal value 1.00 PLN (one zloty) each.'

    New wording:

    'The share capital is divided into:

15. 1,000,000 (one million) class A registered shares of the nominal value 1.00 PLN (one zloty) each,

16. 5,227,142 (five million two hundred and forty-nine thousand one hundred and forty-two) class B bearer shares of the nominal value 1.00 PLN (one zloty) each.'

17. 6,591,238 (six million five hundred and ninety-one thousand two hundred and thirty-eight) class C registered shares of the nominal value 1.00 PLN (one zloty) each,

18. 15,249,142 (fifteen million two hundred and forty-nine thousand one hundred and forty-two) registered shares class D of the nominal value 1.00 PLN (one zloty) each.'

At the same time, the Issuer publishes a uniform text of the Articles of Association, taking into consideration the aforesaid modifications. The Issuer informs you that until present, they have not been served a decision on registering the aforesaid modifications of the articles of association. The Issuer learnt about effecting it from the Central Information Department of the National Court Register, run by the Minister of Justice.

The total number of votes of all the Issuer's issued shares in the General Shareholders Meeting of the Issuer have not changed as a result of modifications described in this report and there are still 28,067,522 votes.