MBF Group S.A.’s response.

Thank you for your questions.

Re. 1. IRYDA+ X1 is currently at the stage of preparation for operational demonstrations and further integration of solutions being developed with technology partners. The coming months include demonstrations, tests and activities to present the system to potential users in Poland and abroad. The MALLARD project remains under development in parallel, with the bulk of the Company’s activity currently focused on IRYDA+ X1 as a project closer to the commercialization and market presentation stage.

Re. 2. In terms of solutions related to infrastructure protection and engineering systems, we maintain a dialogue with defense market players and monitor the needs reported by institutions responsible for national security. At this stage, we cannot provide more details than what has already been made public. We have passed the next stage of offering anti-personnel mines together with a Ukrainian cooperator.

Re. 3. The cooperation with Fairchild has not been terminated, but we are currently awaiting more concrete arrangements regarding potential areas of cooperation. Our goal is to build relationships that will lead to tangible business and technology projects. When significant milestones are reached, the Company will inform the market in accordance with applicable regulations.

MBF Group S.A.’s response.

Thank you for your detailed question. It should be noted that the amount associated with the delivery of the demonstration platforms and the potential value of the in-kind contribution are two separate issues of different economic and legal nature.

In the event of any acquisition of shares for a contribution in kind, its value will be subject to standard corporate procedures and the required valuations and assessments provided by applicable regulations. At this stage, no final decision has been made in this regard, so the Company cannot prejudge the final valuation of the various components of the in-kind contribution.

Referring to the competitiveness of the project, it is important to remember that IRYDA+ X1 is not positioned as a single consumer drone, but as a specialized platform being developed for professional and security applications. The value of a solution is determined not only by the flying platforms themselves, but also by the software, system integrations, ground equipment, know-how, technical documentation, development capabilities and rights related to further commercialization of the project.

For competitive reasons and ongoing development work, the Company does not currently publish the detailed configuration of each set. Information in this regard will be provided as the project progresses and in accordance with the rules applicable to public companies.

MBF Group S.A.’s response.

The MALLARD project remains in the Company’s development portfolio, but most of the resources and activity are currently focused on the IRYDA+ X1 project, which is at a more advanced stage of preparation for demonstration and commercialization.

In the case of MALLARD, we are conducting further technical, operational and business analyses. We see potential applications in the logistics sector, but the implementation of this type of solution requires the appropriate scale of the project and economic justification from both the manufacturer and the future user. Therefore, we are currently focusing on discussions and analysis of potential cooperation models that could ensure the project’s long-term viability.

We do not exclude cooperation with logistics entities in the future, while at this stage the priority is to refine the assumptions of the project and select the most promising directions for its further development.

MBF Group S.A.’s response.

The ARES project remains under development as a training solution for users of unmanned systems. We are currently working to identify potential customers and applications for the system, particularly in the artillery military community, where we are seeing the growing importance of drones in the training and fire control process. At the same time, we are conducting discussions and presentations of the solution to potential users. Our goal is to develop the project toward real-world deployments and operational applications.

MBF Group S.A.’s response.

If it comes to Fairchild Aerospace Corporation’s acquisition of shares it will be only by a US company. There is also the possibility of an issue for a U.S. fund with which Fairchild is in talks about a joint investment in MBF Group.

MBF Group S.A.’s response.

The project is currently in the conceptual and preparatory stages with Advanced Digital Manufacturing LLC. The US partner is working on technical analyses, the functional scope of the solution, and preliminary cost assumptions for building a training simulator for the AH-64E Apache platform.

Once this phase is completed and the necessary project documentation is completed, it is planned to present the concept to selected institutions and potential customers interested in developing training capabilities related to the Apache platform. At this stage, the project is preparatory and analytical in nature.

Advanced Digital Manufacturing LLC has experience in the areas of advanced design, engineering and manufacturing for the aerospace sector. According to publicly available information, the company has implemented projects related to, among other things. with the aviation sector and ventures conducted for entities such as Sierra Nevada Corporation, Safran and initiatives related to Uber Technologies.

MBF Group S.A.’s response.

Cooperation with partners from China and India continues, and in some areas we are in talks to obtain exclusive rights or preferential terms of cooperation. We assess the potential of this relationship positively, but at this stage we cannot comment on the details of the ongoing negotiations. We will inform the market of any significant findings and effects that will be relevant to the Company in accordance with applicable regulations, including through ESPI reports.

MBF Group S.A.’s response.

The project with Robotic Patagonia remains one of the Company’s industrial and training competencies under consideration. We are currently focusing on activities that have the greatest business potential and are closest to the commercialization stage, while maintaining relationships with partners and analyzing opportunities for further development of joint ventures.

Concepts related to production, training and R&D facilities remain relevant, but their implementation requires appropriate scale of operations, partners and economic justification. If a decision is made to proceed to subsequent implementation stages, the Company will inform the market in accordance with applicable regulations.

MBF Group S.A.’s response.

Conversations related to both potential financing and technology cooperation are periodically analyzed by the Company and reviewed for their real business value. For some projects, we are currently conducting a critical and objective assessment of potential benefits, feasibility and commercialization prospects.

Our intention is not to make as many agreements as possible, but to select partners who are able to bring specific competencies, technology, financing or market access. Talks with many entities are still ongoing, but it is impossible to work effectively with all of them at the same time, so we are focusing on projects and partners that offer the greatest execution and business potential for MBF Group S.A.

MBF Group S.A.’s response.

We evaluate the cooperation with Eclipse Trading Pty Ltd very positively. The Australian market is attractive, but at the same time requires going through a series of qualification, audit and authorization procedures that are standard for larger-scale fertilizer deliveries. We are currently going through just such a process with our partner.

Interest in MBF Group’s products is evident both in Europe and in other markets, but international trade in fertilizers is not immediate. Large contracts require verification of suppliers, confirmation of logistics capabilities, financing and compliance with local import requirements. The larger the contract, the usually longer the preparation process.

Our advantage is access to large volumes, proven sources of supply and experience in organizing international transactions. Therefore, we focus not on single market opportunities, but on building lasting business relationships that can benefit the Company for many years to come.

MBF Group S.A.’s response.

In the case of the AdBlue project implemented in the Romanian market, cooperation continues, while detailed information on current volumes, delivery schedules and settlements is of an operational nature and is not published by the Company on an ongoing basis. Our goal remains to develop sales of automotive chemical products in more markets in Central and Southern Europe. The product has already been registered in the local market (RAR permit if memory serves us right). Labels, bottles, bulk packaging – everything is ready. The first shipment of 1-2-3 trucks should start in June. We, for our part, will want to introduce it on Polish stations. This is supposed to be a premium brand product.

With regard to the fuel project, large-scale transactions require going through a series of commercial, logistical, financial and compliance procedures. The Company participates in such processes, but not every project ends in an executive contract, so we inform the market primarily about events that have a real impact on the Company’s operations or situation. Here we will evaluate it by the end of the week, so that no one feels misled. It is particularly about the conflict in the Middle East, which does not end….

As for the integration of solutions related to the MALLARD and IRYDA projects into land-based platforms, it remains one of the developments under study. We see potential for solutions combining unmanned systems with mobile operating platforms, but most of the work is currently focused on the development and demonstration of UAV systems themselves. Integration into Eastern European markets of the Irida with the STAR car would be something great.

MBF Group S.A.’s response.

Cooperation with Polish partners in lightweight structures, components and technologies for unmanned systems remains one of the Company’s developing competencies. Our goal is to maximize the participation of Polish entities in the supply chain and gradually increase the level of national integration of the solutions being developed.

Regarding the ROFR agreement for the IRYDA+ system, the Turkish partner remains actively involved in the development of the project and activities related to its promotion and potential commercialization in the agreed markets. One of the goals of this cooperation is to use the partner’s business relationships and competencies to attract future customers and implementations, which, if successful, would also translate into business benefits for MBF Group S.A. The Company will inform the market of any significant developments in this regard in accordance with applicable regulations.

MBF Group S.A.’s response.

This is no longer an approximate date. This is a fact: late June – early July. And what would you say if an elected Shareholder went to this presentation together with the MBF Group team? 😉

MBF Group S.A.’s response.

In terms of MALLARD projects and solutions related to infrastructure protection and engineering systems, we have already responded and have no significant new information to provide at this stage. Similarly, in the case of commercial activities – the Company is constantly working to develop its portfolio of products, counterparties and sales directions, but not every commercial process results in immediate revenue realization.

In terms of financial performance, we look to the future with great optimism. In recent months, we have significantly increased activity in both technology projects and ongoing commercial activities. It is also worth remembering that many companies developing technologies finance development for years without generating significant revenues, while MBF Group develops R&D projects in parallel and has a second business pillar based on trade and services. Our goal remains to steadily improve the Company’s revenue, profitability and shareholder value.

MBF Group S.A.’s response.

At present, we are not a direct beneficiary of the SAFE program, but we are developing projects in line with its objectives. We expect that prime contractors, including PGZ Group entities and other participants in European-funded programs, will seek technology and execution partners in areas where MBF Group is developing its competence.

At the same time, we ourselves actively offer our solutions and participate in various national and international initiatives. As for the share price, the Board does not comment on current stock prices. We are focused on executing projects, building the Company’s value and achieving further business milestones.

MBF Group S.A.’s response.

When issuing shares for a non-cash contribution, the Company is required to act in accordance with the provisions of the Commercial Companies Code and capital market regulations. This means that the object of in-kind contribution cannot be accepted to the Company at any arbitrary value, but must have economic and legal justification.

The final terms of the possible issue, including the value of the in-kind contribution, would be subject to the evaluation of the Company’s competent bodies, and would then be presented to shareholders and the market in accordance with applicable regulations. The mechanisms provided by the Companies Act are precisely designed to protect the interests of the Company and all shareholders from unjustified over- or undervaluation of contributed assets.

MBF Group S.A.’s response.

The company has a personal relationship. That’s where the link ends. This is a completely separate entity.

MBF Group S.A.’s response.

The IRYDA Plus project has not been canceled. On the contrary, the experience, development work and competence accumulated in this project form the foundation for subsequent solutions under development, including IRYDA+ X1.

Currently, the largest part of the Company’s activity is focused on IRYDA+ X1, which is at a more advanced stage of preparation for demonstration and commercialization. We view this as a natural evolution of the technologies being developed, rather than an abandonment of the earlier IRYDA Plus project.

MBF Group S.A.’s response.

It’s understandable that investors are comparing the two price levels, but it’s important to remember that a cash issue and a potential in-kind issue are two different instruments to achieve different business goals. In the former case, the Company is raising cash capital, while in the latter it is potentially acquiring assets, technologies, rights or competencies that may be of strategic importance for its further development.

The final value of a possible in-kind contribution does not result from a simple conversion of the number of shares into the number of rigs or equipment, but is subject to the procedures provided for by the Companies Act and the evaluation of the Company’s bodies. From the Board’s point of view, the most important thing is that any transaction should be beneficial to the Company and all shareholders, regardless of whether it is cash or in-kind.

What if the valuation was at par = PLN 2.5 / share. Immediately there would be an accusation that they are printing action for worthless equipment. Right? We expect a fairly solid valuation of the 15 platnorms because we know the market prices that have been utallized. In order not to issue millions of shares, such a price was one of the better ones for both sides. And Shark Aviation still intends to make money on these shares in the future.

MBF Group S.A.’s response.

The company is analyzing various sources of financing, but our goal is to raise capital on terms that will benefit both MBF Group and its shareholders. In the case of financial partners, it is not only the availability of funds that is crucial, but also the agreement on the strategy, the pace of development and the quality of the projects implemented.

MBF Group S.A.’s response.

Each of these relationships is slightly different in nature, so it is difficult to point to just one. From a potential scale perspective, we are particularly interested in projects related to the UAV sector, defense and export markets, where we work with partners from Turkey, the US, Ukraine or Asia. This is where we see the opportunity to build products, competencies and advantages that can go beyond the domestic market.

At the same time, trade and distribution projects with foreign partners are of great importance to us, as they allow us to develop the Company’s ongoing operational activities. Until a dozen months ago, MBF Group operated on a completely different international scale than it does today. Today we have discussions and projects on several continents, and our task is to turn as many of these relationships as possible into concrete implementations, orders and long-term business cooperation.

MBF Group S.A.’s response.

Definitely yes. While most companies focus on either trading or technology development, MBF Group is developing both areas in parallel. This allows us to finance part of our development activities from current operations, while building competencies and projects with much higher potential added value.

In addition, we use experience gained in international trade, business relationships and foreign contacts to open up new opportunities for technology projects. In our opinion, it is the combination of commercial competence, international network of contacts, and UAV and dual-use technologies under development that constitutes one of the most interesting and underrated features of MBF Group in the market today.

MBF Group S.A.’s response.

We currently see the greatest growth potential in the areas of unmanned technologies, dual-use solutions and the broader security and defense sector. This is where we see the greatest market dynamics, growing budgets and interest from both public institutions and private partners at home and abroad.

At the same time, we are not abandoning our commercial activities, which remain an important business pillar of the Company. Our goal is to use the revenue and experience gained from international trade to support higher-margin projects with greater growth potential, such as UAVs, training systems and infrastructure protection solutions. That’s why the largest part of the development effort is currently centered around technology projects.

MBF Group S.A.’s response.

At this stage, we cannot publish detailed information on the value of the project or assess its chances of being acquired in percentage terms. Some of the information regarding the scale of the venture and its importance to the Company will be presented in communications to the market in the coming days.

Instead, we can say that cooperation with the Bangladeshi partner is going very well. When the time comes to provide the big picture, many investors may be positively surprised (and the hecklers devastated) by both the stature of those involved on the partner side and the level of access to potential end users that has been built.

In the near future, the market may also get the first more concrete information to better assess the potential commercial value of the IRYDA+ X1 system. It is worth emphasizing, however, that we view cooperation in Bangladesh as the beginning of building a long-term business relationship, rather than a single project or a one-time commercial opportunity.

MBF Group S.A.’s response.

We are in talks with various financial entities, both from Poland and abroad, but such talks are almost always covered by confidentiality clauses. For this reason, we cannot comment on specific projects, investor expectations or potential financing structures.

What we can say, however, is that MBF Group has a much broader portfolio of projects and opportunities today than when the earlier agreements were made. Significantly, most of the investment talks we are having now involve Polish entities. Our goal is not to build interest in the Company by communicating the names of funds or institutions alone through the media, but by consistently increasing the business value of MBF Group. We believe that sustainable growth in shareholder value should come primarily from projects, revenues and business development, not from short-term market speculation. By publishing who we are talking to today we would have a double-digit (2x?) price, but will the company raise capital from this? There will be time for everything. For any information.

MBF Group S.A.’s response.

Benefits? Diversification. Thanks to our presence in many markets and cooperation with partners from different countries, we are not dependent on one product, one sector or one geographic direction. This gives the Company greater resilience to changes in the economy and access to projects that locally we would never have access to.

The second benefit is the ability to acquire technologies, competencies and business relationships that would have taken years and much more resources to build on their own. In our opinion, it is the international network of contacts, consistently built over many months, that can become one of MBF Group’s most valuable assets in the future and a source of further projects, contracts and competitive advantages.

MBF Group S.A.’s response.

Yes, definitely. Looking at the number of projects underway, the scale of international contacts and the directions of development, this is one of the most interesting periods in MBF Group’s history as a listed company. Just a few years ago, it would have been difficult to imagine that we would be simultaneously conducting UAV, defense, international trade and projects with partners in Europe, Asia, the Middle East or North America. From the Board’s perspective, the number of open business opportunities, the quality of partners and access to new markets are greater today than ever before. This is why we consider the coming quarters to be particularly important for MBF Group’s further development.

MBF Group S.A.’s response.

If I had to point out three elements, first would be the international network of business relationships, built consistently over many months. The market mostly sees individual communications, while it is much more difficult to assess the value of contacts and relationships that can lead to projects in Poland, Europe, Asia or the Middle East.

Second, the ability to combine classic commercial activities with technological and defense projects. Few companies of our scale simultaneously have experience in international trade, access to technology partners and the ability to participate in UAV and dual-use solutions projects.

Third, flexibility and speed. MBF Group is not a large corporation burdened by a multi-level decision-making structure, so we can react relatively quickly to business opportunities, build partnerships and enter new markets. In a world that is changing ever faster, such adaptability can be of great value. An example is the fiber optics offering. We have access to millions of kilometers of product without intermediaries. Sometimes a coincidence makes a huge opportunity, sometimes you have to work for a given opportunity for months.

MBF Group S.A.’s response.

The registration process for Shark Aviation Dynamics is currently underway and we expect it to be finalized once the registration procedures are completed (at the National Court Register). At the same time, our partner from Turkey is very active in promoting its solutions, product presentations and developing business contacts. We are very impressed by his commitment and support these activities in Poland and European markets to the extent possible.

As for the acquisition of shares in exchange for non-cash contributions, we assume that the next major steps in this process should take place in the near future. An element of such a procedure will be the convening of a General Meeting of Shareholders, which will make appropriate corporate decisions. We will inform the market of all significant milestones in accordance with applicable regulations. You have to wait for the right announcements 😉

MBF Group S.A.’s response.

To be honest, we don’t keep up to date with anonymous online forums, nor do we take the time to do so. Occasionally, someone concerned will send us something for evaluation and comment. A day has only 24 hours, and we much prefer to allocate them to talking with clients, partners, investors, developing projects and running the business.

Everyone has the right to spend their time as they see fit. We believe that building a business, meeting with family or developing one’s own competence is a much better investment than spending hours analyzing anonymous posts from people whose identity, experience and intentions are most often unverifiable. We feel sorry for people who have no other occupation than to deal with someone else’s intentions – apparently they have not come to any of their own and prefer to criticize others.

If anyone wants to form an opinion about MBF Group, we encourage you to read the reports, visit our headquarters or contact the Company directly. We have been operating at the same address for many years (probably eight) and are not in the habit of hiding behind anonymous nicknames.

MBF Group S.A.’s response.

More faith from small investors and continued work at the grassroots. We have grown 200% over the last 18 months. If we keep up the momentum it will be 20PLN or maybe even higher.

MBF Group S.A.’s response.

Definitely closer to the second scenario. We do not see MBF Group as a classic small trading company, although trading remains an important part of our business. Our ambition is to build an international technology and trade group, combining competencies in the areas of trade, new technologies, UAVs, dual-use solutions and security and defense projects.

In 3-5 years, we would like to be seen as a company that has successfully combined Polish entrepreneurship, international business relations and modern technologies. If we maintain the current pace of development, realize at least some of the ongoing projects, and use the potential of the partnerships we are building today, MBF Group will be a company incomparably larger and operating in many more markets than it is today. It is this direction of development that we are consistently pursuing.

MBF Group S.A.’s response.

Yes, there is interest, including from Ukrainian-related customers. In the case of large projects, however, it is not the demand itself that is the biggest challenge, but the agreement of all commercial terms, such as price, delivery schedule, financing method, payment security or advances. In our experience, there is often more time between when the demand arises and when the contract is signed than investors expect.

MBF Group S.A.’s response.

In our opinion, sooner rather than later. We are talking about the prospect of weeks rather than many months or years, although we would not like to declare a specific date, since part of the processes also depends on the other party and formal arrangements. As soon as we are able to provide information in a manner consistent with applicable regulations and the interests of the Company, we will certainly do so.

MBF Group S.A.’s response.

Yes, we assume that shareholders will find out in a relatively short time. We’re talking about the prospect of weeks rather than many months, but we are bound by both confidentiality obligations and the information obligations of a public company.

All we can say is that when all the pieces of the puzzle can be revealed, some investors may be positively surprised by the level of business relationships MBF Group has managed to build recently. As always, we will inform the market in a manner consistent with regulations and at a time that is appropriate to the interests of the Company and its shareholders.

MBF Group S.A.’s response.

See you on the stock market trail 🙂