Acceptance of the content of the contract on. wheat shipments to the port of Lagos

On January 10, 2024, the Company’s Board of Directors received information that the negotiated content of the contract for the supply of wheat to the port of Lagos, Nigeria, had been accepted. Based on the content of the Contract, the terms of loading, transportation, delivery, payment and insurance of freight, as well as the quality and specifications of the product subject to future delivery were established.

Along with the acceptance of the content of the contract, MBF Group SA additionally received the content of an irrevocable documentary letter of credit (DLC) for the amount of the value of the Contract, i.e., the DLC, for review and submission to the Company’s bank (PKO Bank Polski SA). ca. $7,750,000. Any comments from the Company’s bank in order to safeguard our interests will be forwarded directly to the counterparty bank, which is Fidelity Bank Plc and which will guarantee the funds deposited with the letter of credit.

The above is related to the cooperation and non-competition agreements signed on November 22, 2023 for the supply of agricultural products. The agreements were concluded with an equity entity registered in Dubai, UAE. The contractor is a company registered and operating under the laws of the United Arab Emirates. The company is engaged in international trade in agricultural products, construction products and energy raw materials, supplying to Poland, Western Europe, Africa and Ukraine. Registration in Dubai allows the Contractor to freely enter into contracts and conduct business through an experienced banking operator: Mashreq Bank Dubai.

In the second step, the Company was notified that the Issuer had accepted delivery of 25,000 tons of wheat (Class IV, non-GMO). It was agreed that the counterparty would make payment by a non-possessory documentary letter of credit (DLC). It was further agreed that every subsequent loading and transportation would be carried out in such a manner and under such conditions.

In our opinion, the final conclusion of the aforementioned contract will bring great opportunities for the Company, but also risks, which the Management Board must monitor on an ongoing basis.


  • Significant new contract to supply wheat to Nigeria. The value of the contract is about $7.75 million, representing a significant increase in revenue for the company. The contract will allow MBF Group SA to enter a new prospective market.
  • Working with an experienced business partner from the United Arab Emirates. Partner MBF Group SA has extensive experience in international agricultural trade. Through this cooperation, the company gains access to new markets and growth opportunities.
  • Irrevocable Documentary Letter of Credit (DLC) to ensure payment security. DLC is a form of payment security that guarantees that the contractor will receive payment for the delivered goods. With DLC, MBF Group SA can be assured that it will receive its due for the delivery of wheat.


  • Risks associated with contract performance. The contract is for the delivery of a significant amount of goods to a distant country. Implementation of the contract may be hampered by factors such as transportation disruptions, the unstable political situation in Nigeria or rising wheat prices.
  • Risks associated with working with a business partner. Partner MBF Group SA is a company registered in the United Arab Emirates. Cooperation with Arab entities may involve certain risks, such as non-compliance with contractual obligations, lack of transparency in settlements or unfavorable regulations.

At the same time, we would like to inform you that the Management Board of MBF Group SA is awaiting receipt of the Irrevocable Confirmed Purchase Order ( ICPO) document, which will allow it to begin preparing the loading of wheat at the port of Odessa (Ukraine). Given the importance of the contract and its value in the scale of the Issuer’s current operations and revenues, the Management Board will report on progress through current reports (i.e., any key developments, information and steps that are being taken or of which knowledge has been gained).