Address of the executive director of “SIN CARS INDUSTRY” AD in connection with the unsuccessful public offering of shares

Dear Shareholders,

Dear friends of SIN CARS,

I thank everyone who supported us and participated in the capital increase undertaken, despite the difficult times in the world stock markets. This capital increase was already set after the IPO in 2021. That’s why we decided to initiate it anyway.

Our potential investors who had expressed their desire to participate in the capital increase faced many internal investment restrictions at various levels, which prevented them from allocating funds with us. With this in mind, we have already found a way, through the other companies of the SIN CARS group abroad, to make the attraction of capital possible.

Our desire to be a public company is related to gaining experience before entering the Western European markets. Publicity has given us and continues to give us invaluable feedback from investors with different horizons, strategies and expectations. In the past 2 years, over 4 million BGN were effectively invested in the implementation of the “L CITY” project – 2 million raised through the 2021 IPO, and 2 million provided by the majority shareholder as loans.

What the company has achieved so far compared to similar companies in Western Europe (homologation issued for car and battery production in Europe, England and America) gives us an extremely competitive advantage. The production has actually started and the orders for 2023 are for over 400 cars. In Western Europe, the “Green Deal” is a priority and is already in focus, and Europeans never wait for the last moment – they stimulate its successful implementation in every possible way.

With this in mind, we are already in negotiations with Euronext Amsterdam for the listing in the shortest possible time of a holding structure including the English, American, German and Bulgarian (owner of the Romanian) divisions of the company.

We are in the process of joining the other foreign companies of the SIN CARS group under the management in a common holding. I take this opportunity to emphasize that SIN CARS Industry AD remains a Bulgarian company. In 2014, my team and I made a choice to return from England to Bulgaria. Because we are Bulgarians!

Exporting part of the production to Romania does not mean moving the company there. Good corporate governance requires a constant search for opportunities to make the business better and more efficient. We did not find support in Bulgaria, but on the other hand, the Romanian state provided us with good conditions – the acquisition of land for the new plant and a refund of 50% of the investment we made. The new Romanian company will be owned by the Bulgarian “SIN CARS Industry” AD.

The fact that in the history of Bulgaria there is now a Bulgarian car manufacturer of the highest class is a dream come true for us. Bulgarian supercars won titles in Europe, Australia and America against the biggest names in the automotive industry with multimillion-dollar budgets. The price we have paid for this is far beyond measure. The result has always been important to us.

Thanks again to everyone who believes in us and to all my colleagues from the SIN CARS team – for the unreserved faith and hard work! I am honored that we are together in our cause!

With respect,

Rosen Daskalov,

Executive Director of “SIN CARS Industry” AD