BITTNET SYSTEMS S.A. (referred to as the “Company” / “Issuer” / “Group”) informs investors about the notification received on 12.06.2023 from the Competition Council in the investigation file started in May 2021 on Dataware Consulting – a company recently added to Bittnet Group. According to the notification, a fine for anti-competitive practices in the amount of RON 2,321,589, representing 3.4% of the 2022 FY turnover, is imposed on Dataware Consulting.

Until the issue of this report, the competition authority has not sent Dataware the sanctioning decision, the Competition Council having 120 days to communicate this decision in writing. The sanctioning decision should include all the arguments and analyses carried out by the competition authority, and the reasons for applying the sanction.

The investigation of the Competition Council on Dataware was known at the date of the transaction with the Bittnet Group and was evaluated by the Issuer in the due diligence process carried out on Dataware Consulting. The potential unfavorable decision of the Competition Council was included in the investment agreement as a risk guaranteed by the company’s previous shareholders.

Dataware Consulting will challenge the Competition Council’s decision in court, and if the court upholds the Competition Council’s decision and fine, the investment contract provides that both the benefits and the risks related to this matter are borne by the sellers.

The decision of the Competition Council and the fine applied to Dataware will not affect the consolidated financial statements of the Bittnet Group. Also, the applied fine will not in any way affect the fulfillment of the obligations assumed by Dataware Consulting towards its clients and partners, nor the solvency of the company, which operates on a solid basis from a financial point of view.

The Issuer will inform investors and the capital market about the court’s decision regarding the appeal process of the Competition Council’s decision.