News

New listing of the company GAMING FACTORY

GAMING FACTORY S.A. was newly listed on the GPW Main Market on 23 July 2020.
GAMING FACTORY S.A. is the 440th issuer listed on the GPW Main Market and the second new listing on the GPW Main Market in 2020.

Key information

* at the issue price of series E shares and the selling price of series B shares, i.e., PLN 15.50

Issuer’s history
The issuer was established on 13 November 2017. The Company was founded by MM Fund sp. z o.o. and Mateusz Zawadzki.
Initially, before developing proprietary publishing accounts dedicated to game distribution, the Company worked with a third-party publisher which had the necessary experience and know-how. For that purpose, on 14 November 2017, the Issuer concluded a master co-operation agreement with Ultimate Games S.A. whereby both parties undertook to work jointly towards future arrangements concerning the terms of production, publication, promotion, and distribution of computer games in the Issuer’s portfolio on a range of distribution platforms by Ultimate Games S.A. The Issuer was entered into the business register of the National Court register, entry no. KRS 0000707300, on 4 December 2017.
On 25 November 2019, the Issuer, Ultimate Games S.A. and an individual person founded the company Ultimate VR Sp. z o.o.

Issuer’s business
The core business of the Issuer’s Group is video games with a focus on the production and distribution of games for PCs as well as Nintendo Switch, PlayStation and Xbox consoles.
The mission of Gaming Factory is to co-finance and produce a large number of low and medium-budget games.
The Company produces games in collaboration with development teams commissioned under work contracts to produce computer games. Following the production and acceptance of a game, the rights in the game are transferred to the Issuer. Gaming Factory is responsible for the production of PC games.
In order to expand its game project portfolio, the Company has established relations with development teams which develop PC games for the Issuer while the Company oversees the production. Aiming to establish a long-term group of development teams, the Company has co-funded development teams of young talents at an early stage of growth who were looking for funding to develop their own computer game projects. The Issuer identifies programmer teams in Poland and beyond to offer financial support and know-how in the production and publication of games. The teams commit in return to work with the Company in the long term. The Issuer assists development teams among others with funding, marketing, access to publishers, and the inception and organisation of companies.
Since its inception, the Company has provided capital in support of a number of game producers including: Atomic Jelly S.A., Pentacle S.A., Polyslash S.A., Asmodev S.A. (formerly Blue Fox Games S.A.), Art Games Studio S.A. (formerly Big Flat Potato S.A.), Live Motion Games Sp. z o.o., Nesalis Games Sp. z o.o., Baked Games Sp. z o.o., Haje Sp. z o.o., Pixel Flipper S.A. The Issuer holds interest in game producers, including Punch Punk S.A. and Drageus Games S.A.
The objective of the Issuer’s equity investment in those companies was to establish relations with development teams in order to jointly invest capital in the production of computer games and thus to strengthen the Issuer’s operations. Equity investment at an early stage of growth is a standard practice expected in the game development industry which allows players to acquire or improve their know-how and reputation and establish relations with computer game development teams.

Public offering
In the public offering, the Issuer offered:

• up to 1,100,000 new issue series E shares;
• 275,000 series B shares sold by existing shareholders.

Issue / selling price of the shares: PLN 15.50.

On 9 July 2020, 1,375,000 Offered Shares were allotted including:

• in the Individual Investor Tranche: 687,500 series E shares; number of investors: 5,303;
• in the Institutional Investor Tranche: 687,500 shares including: 412,500 series E shares taken up by 30 investors and 275,500 series B shares taken up by 31 investors.

The reduction rate in the Individual Investor Tranche was 89%.

Public offering value: PLN 21,312,500 including:

• value of the new issue shares (raised by the Issuer): PLN 17,050,000;
• value of the sold shares (raised by shareholders selling shares): PLN 4,262,500.

Purpose of the issue
The Company wants to invest the receipts from the public offering as follows:

• approx. 70% of receipts – in the production of games; and
• approx. 30% of receipts – in marketing.