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New listing of the company STARWARD INDUSTRIES S.A. on NewConnect

STARWARD INDUSTRIES S.A. was newly listed on NewConnect on 19 August 2020.

STARWARD INDUSTRIES S.A is the 373^rd company listed on NewConnect and the 7^th new listing on NewConnect in 2020. 

Key information

*at the reference price

The Issuer’s business and history

The Company was founded in September 2018.

Starward Industries S.A is an independent developer of AA+ games for PCs and game consoles including PlayStation, Xbox, and Nintendo Switch, set up by a team with long-time experience in companies such as CD Projekt Red, Reality Pump, Techland.

The Issuer’s first and core product, the game under the working name “P#1”, is at an early stage of production. The first product under development in the first video game franchise is an adventure game (a story of astronauts) under the working name “P#1”. The Issuer holds an exclusive licence to produce a video game based on a selected novel by Stanisław Lem, which expires on 5 October 2023.

The Issuer is planning to release the first game well before the licence expiration date, i.e., in 2021. The Issuer will generate revenue mainly from sales of digital copies of the first game and, in future, subsequent games.

The pre-incorporation stage was funded by Marek Markuszewski (current President of the Company). In June 2018, a group of private investors committed to finance the project with PLN 2.8 million and eventually provided PLN 3.3 million. Financing was provided based on game production milestones:

• until November 2018 – PLN 1.0 million (milestone: incorporation and transfer of the book licence to the Company);
• February 2019: PLN 1.0 million (milestone: acceptance of the Prototype);
• May 2019 – PLN 1.4 million (milestone: acceptance of the Demo Draft);
• August 2019 – PLN 2.7 million (milestone: acceptance of the Tech Demo).

Since inception, the Company has raised equity totalling PLN 9.1 million from 162 shareholders. The equity is fully allocated to the production, promotion and sales of the first game based on a novel by Stanisław Lem.

The game production and publication plan is based on a budget of PLN 7.1 million covering the following expenses: an in-house developer team, outsourced development, IT (hardware and third-party licences), office management (office space rent and maintenance), administrative expenses (legal, accounting, IR, share issue). Another PLN 2 million is allocated to a marketing campaign.

The Issuer has raised funding through a share issue and it covers all expenses budgeted for the production of its first game. The Management Board invests free cash in bonds issued by the Government of Poland.

The Issuer’s selected financials (000’PLN):

Non-public offering of series G shares

Subscription start and end date: 19 July – 15 August 2019 

Number of offered shares: 114,711 

Number of allotted shares: 114,711    

Issue price: PLN 23.50 

Total offering value: PLN 2,695,708.50 

Series G shares were taken up by 47 persons

Reduction rate: 41.4%

Public offering of series H shares

Subscription start and end date: 22 November 2019 – 9 January 2020 

Number of offered shares: 73,005 

Number of allotted shares 73,005 

Issue price: PLN 41  

Total offering value: PLN 2,993,205 

Series H shares were taken up by 72 persons

Reduction rate: 22.19%