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New listing of LEGIMI S.A. on NewConnect

The company LEGIMI S.A. was newly listed on NewConnect on 14 April 2021.

LEGIMI S.A. is the 377^th company listed on NewConnect and the eighth new listing on NewConnect in 2021. 

Key information

*as at the reference price

Issuer’s history

The Company was established on 12 January 2009 as „Legimi” sp. z o.o. In connection with the Issuer’s business, it raised approx. PLN 600,000 in 2009 to develop the first version of an e-book distribution platform. The proceeds were expensed in 2009-2011. In Q4 2011, the Issuer delivered a major contract for the Allegro Sp. z o.o. Group: the ebooki.allegro.pl service worth approx. PLN 0.5 million.

In Q3 2013, the Company received support of the fund SATUS Venture Capital necessary to market the service and expand the technology reach to new operating systems: Android, Windows Phone, e-czytnik. In October 2016, the Issuer acting via the company Legimi International Sp. z o.o. launched the German Legimi platform at legimi.de. On 12 March 2018, the Management Board of the Issuer signed a memorandum of understanding with Readfy GmbH concerning the Issuer’s acquisition of Readfy GmbH, the owner of the leading German freemium reading application where users get free access to e-books in exchange for watching ads. The objective of the Issuer’s acquisition of Readfy GmbH was to expand the Company’s footprint and promote its subscription service in the German market.

The Issuer holds interest in four related parties: Legimi International sp. z o.o., Holycode sp. z. o.o., Microsite sp. z o.o. and Readfy GmbH; Legimi International sp. z o.o. holds 100% of Booklikes sp. z o.o.

Legimi International Sp. z o.o. runs international operations. The Issuer has licensed the company to use the Legimi platform and technology as a franchisee. The company provides software development and Legimi platform development services to the Issuer; the Issuer buys rights to all platform modifications from Legimi International Sp. z o.o.

Holycode sp. z. o.o. provides the Issuer’s technology infrastructure and helps to build its competitive advantage. It develops and implements new technological solutions, such as the function for users to switch between e-books and audiobooks. 

Microsite sp. z o.o. provides marketing solutions to publishers who are Legimi’s partners. Its services include the development of individual websites for promoted books and the distribution of free e-books to selected customer groups.

Readfy GmbH is the owner of the leading German freemium reading application where users get free access to e-books in exchange for watching ads.

Booklikes sp. z o.o. is the owner of booklikes.com, a global community service for literature fans, and plans to develop an innovative library and publication access service.

Issuer’s business

The core business of the Issuer is to sell e-books and audiobooks and to offer e-reading services on the Polish market. Initially the Issuer offered access to 800 titles, expanding its offer year after year. The Company now offers subscription access to over 60,000 titles and works with nearly 500 publishers.

The Issuer offers five packages customised to readers’ preferences where users may read a certain volume of pages per month or get unlimited access on up to 4 devices. Each user may switch to a different subscription plan at any time. Customers who do not use subscription plans may buy and download individual e-books for all devices.

The Issuer operates the Legimi platform in Germany via Legimi International Sp. z o.o. The company Legimi International Sp. z o.o. is a franchisee of Legimi’s subscription model and offers the model in foreign markets. The Issuer is paid a fee for its technology platform and know-how.

The Issuer’s selected financials (PLN): 

The Issuer’s share capital according to the entry in the Business Register is PLN 141,599.6 divided into 1,415,996 ordinary bearer shares with a nominal value of PLN 0.10 per share.

Sale of shares:

The following transactions were executed in the last 12 months:

1) sale by Supervisory Board Member Bartłomiej Gola of 20,734 shares of the Company at PLN 8.50 per share on 18 March 2020;

2) sale by Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych Venture Capital Satus of 141,600 shares of the Company at PLN 24.00 per share on 16 February 2021;

3) purchase by Małgorzata McGovern of 121,600 shares of the Company at PLN 24.00 per share on 16 February 2021;

4) sale by Supervisory Board Member Bartłomiej Gola of 14,999 shares of the Company at PLN 24.00 per share on 24 February 2021.

The value of the transactions in 177,333 shares totalled PLN 3,934,615.

Shareholders

Financial instruments newly listed on NewConnect:

•     704,000 series A ordinary bearer shares
•     60,358 series B ordinary bearer shares
•     31,725 series C ordinary bearer shares
•     33,748 series D ordinary bearer shares
•     52,328 series F ordinary bearer shares
•     123,837 series G ordinary bearer shares