Project SOBŮLSKÝ GRUNT and the establishment of the company APF AGRICULTURAL PRODUCTION CR s.r.o.

Dear Clients,

Last year, we informed you about the commencement of our cooperation with the project SOBŮLSKÝ GRUNT in the Hodonín district.

This is a family farm engaged in extensive cattle breeding. The current herd includes over 200 heifers, young bulls, and calves.

In the first phase of cooperation, we offered the company a long-term lease of agricultural land owned by the APF GROUP for the expansion of pastures and meadows in the districts of Hodonín and Uherské Hradiště. The expansion of leased agricultural land is ongoing.

In the second phase, a joint project, BENDIA s.r.o., was established, in which the APF GROUP holds a 25% stake. Through this project, we will gradually finance the development of the farm. For the expansion of cattle herds, we are providing operational financing of CZK 10.0 million (for the purchase of calves and feed). The planned annual revenue from the sale of aged beef in the first year of the project is expected to be CZK 80.0 million (www.sobulskygrunt.cz).

Furthermore, APF AGRICULTURAL PRODUCTION CR s.r.o. was established to carry out its own agricultural activities on land owned by the APF GROUP.

We will keep you informed about the progress of individual projects.

Thank you for your trust and cooperation.