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New listing of the company DRAGEUS GAMES S.A. on NewConnect

DRAGEUS GAMES S.A. was newly listed on NewConnect on 17 January 2020.

Drageus Games S.A. is the 377^th issuer listed on NewConnect and second first new listing on NewConnect in 2020.

Key information

*at the reference price

Issuer’s business and history

The Issuer’s products are sold around the world in the digital distribution model on dedicated distribution platforms, including mainly Nintendo Switch, as well as to a lesser extent on Steam, App Store and Google Play, which are the world’s biggest game and app distributors.

The Issuer released a total of 15 games by the end of November 2019.

Tactical Mind was the first game released by the Issuer together with QubicGames S.A. in December 2017. In August 2018, the issuer signed a licence agreement with Ultimate Games S.A.; under the agreement, Ultimate Games S.A. released Mech Rage on Steam. The game was released in December 2018. In addition to Mech Rage, the Issuer also released Mad Carnage and Fun Box Party 3 in 2018. Three new titles were released in H1 2019: Tardy and Event Horizon in March 2019 and Dead Dungeon in June 2019. In Q3, the issuer released two new games, Sweet Witches and Swaps and Traps, in July and Atomic Heist and Island Maze in September 2019. The Issuer released four new games in Q4 2019 by the end of November: Pixel Gladiator, Spirit Roots, One Person Story, and Tactical Mind 2.  

The Issuer holds 100% of eHeroes sp. z o.o., which was established in October 2017.

In 2018, eHeroes sp. z o.o. specialised in FREE TO PLAY projects: mobile games and Minecraft servers. eHeroes sp. z o.o closed its first financial year on 31 December 2018.

Business strategy

The Issuer’s strategy provides for continued growth based on the development and distribution of many low-budget high-margin games created by small dispersed development teams. This approach of the Company’s Management Board mitigates the investment risk of the development of any single game. The growth strategy will be pursued according to the following goals:

I. To become a leader in logical video games;

II. To diversify the game portfolio by developing and distributing new games and releasing third-party games: at least 6-10 titles per year;

III. To continue growth of development teams including formation of new teams and expansion of existing teams.

The Issuer will pursue the strategy in 2019-2020. All three strategic goals are currently pursued. In order to implement the strategy, the Company is considering the following sources of funding:

• cash flows generated in the Company’s operations;
• funds raised in a share issue.

The issuer’s selected financials (PLN):

The Issuer’s equity registered in the business register is PLN 210,000 divided into 2,100,000 ordinary bearer shares with a nominal value of PLN 0.10 per share including:

• 1,113,890 series A ordinary bearer shares;
• 86,110 series B ordinary bearer shares;
• 340,000 series C ordinary bearer shares;
• 300,000 series D ordinary bearer shares;
• 62,739 series E ordinary bearer shares;
• 133,836 series F ordinary bearer shares;
• 63,425 series G ordinary bearer shares.

Offering of series E shares

The series E shares were issued in a private subscription according to Article 431(2)(1) of the Commercial Companies Code.

The subscription opened on 17 September 2018.

The subscription closed on 8 October 2018.

Allotment date: 8 October 2018

Size of issue: 62,739 shares

Issue price: PLN 6.00 

Issue value: PLN 376,434 

Number of shareholders: 5

The issuer dedicated the funds raised in the series E share issue at PLN 294,720 to the completion of the on-going projects Mech Rage, The Excalibur Defense, Tactical Mind 2 (PLN 183,020) and the porting of games to Nintendo SWITCH as publisher (PLN 111,700).

Offering of series F shares

The series F shares were issued in a private subscription according to Article 431(2)(1) of the Commercial Companies Code.

The subscription opened on 10 October 2018.

The subscription closed on 26 November 2018.

Allotment date: 26 November 2018

Size of issue: 133,836 shares

Issue price: PLN 6.00 

Issue value: PLN 803,016 

Number of shareholders: 19

The issuer dedicated the funds raised in the series F share issue at PLN 675,522 to the porting of games to Nintendo SWITCH as publisher (PLN 168,383). The Issuer is planning to invest remaining amount to the porting of games to Nintendo SWITCH as publisher and to the completion of on-going game projects.

Shareholders:

Financial instruments introduced to NewConnect:

• 1,113,890 series A ordinary bearer shares;
• 86,110 series B ordinary bearer shares;
• 340,000 series C ordinary bearer shares;
• 300,000 series D ordinary bearer shares;
• 62,739 series E ordinary bearer shares;
• 133,836 series F ordinary bearer shares;