The Management Board of Proguns Group S.A., with its registered office in Warsaw (the Issuer), announces that on July 8, 2026, the Issuer entered into a commercial agency agreement (the Agreement) with U.S. Ordnance, Inc., with its registered office in McCarran, Nevada, USA (US Ordnance).
Under the Agreement, the Issuer will serve as the exclusive representative of US Ordnance in Poland for the sale of the following types of weapons, manufactured by US Ordnance, to the Polish government and military end users:
1. the complete line of 12.7 mm M2FLEX, M2FIXED, M2A1, and M2A2 machine guns;
2. all models of the 7.62 mm M60 series machine guns;
3. all models of the M240 and MAG 58 machine guns;
4. all models of light machine guns in 5.56 mm and 7.62 mm calibers;
5. the Mk19 40-mm automatic grenade launcher.
The agreement was entered into for a period of 2 years.
The agreement sets forth detailed terms governing the parties’ cooperation, including the scope of the Issuer’s representative activities, rules for communicating with potential institutional investors, obligations regarding regulatory compliance, and the terms for compensating the Issuer on a commission basis. The agreement also contains provisions typical for this type of contract regarding confidentiality, the protection of intellectual property rights, restrictions on representing competitors, and the Issuer’s liability for damages resulting from a breach of the agreement.
U.S. Ordnance is an American manufacturer of military small arms, primarily machine guns and automatic grenade launchers that comply with NATO standards.
The Issuer notes that the conclusion of the Agreement is part of the implementation of the Issuer’s strategy to build capabilities in the area of distribution and sales representation for armaments and related products, as described in the strategy published on March 12, 2026, in ESPI Current Report No. 13/2026.
In the Issuer’s opinion, the conclusion of the Agreement may be of significant importance for the further development of the Issuer’s operations in the defense products segment; however, the Agreement’s impact on the Issuer’s future financial results will depend on the effectiveness of securing orders and executing the transactions covered by the cooperation.