Bolivia , United States and Mexico
Press Release

Court of Appeals’ ruling in the case of GCC vs. Compañía de Inversiones Mercantiles (CIMSA)

Bnamericas Published: Friday, January 13, 2023

This is an automated translation of the press release issued in Spanish

GCC, S.A.B. de C.V. (BMV: GCC* or “the Company”), a leading producer of cement and concrete in the United States and Mexico, announced today that it has obtained an unfavorable decision from the United States Court of Appeals for the Tenth Circuit, in connection with the arbitration commenced by Compañía de Inversiones Mercantiles, S.A. (“CIMSA”), against the Company. The highest constitutional court in Bolivia, the country with jurisdiction over the arbitration, ruled in favor of GCC in this matter. However, in a decision on January 10 of this year, the Tenth Circuit refused to recognize this ruling. GCC is evaluating its legal options and the prospect of further recourse. The Tenth Circuit decision affirms a Colorado District Court judgment that orders GCC to pay CIMSA the equivalent of $36.1 million dollars plus costs and interest. Based on this decision, GCC will exercise its contractual and other legal rights to recover damages and expenses that the judgment may ultimately require the Company to pay. The dispute does not affect, in any way, the Company's solid financial position, the fulfillment of obligations and liabilities, or the normal course of business. This document is submitted in compliance with Article 54 of the Mexican Issuers' Regulation (Circular Única de Emisoras).

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