Relationships with debuts
New listing of DRAGO ENTERTAINMENT S.A. on NewConnect
The company DRAGO ENTERTAINMENT S.A. was newly listed on NewConnect on 28 April 2021.
DRAGO ENTERTAINMENT S.A. is the 366th company listed on NewConnect and the twelfth new listing on NewConnect in 2021.
Key information
|
company name |
DRAGO ENTERTAINMENT S.A. |
|
seat |
Kraków |
|
core business |
The Company produces AA (mid-budget) games in an 18-24 month development cycle, accompanied by the production of simulator games in a 12-15 month production cycle in parallel |
|
new listings on NC in 2021 |
12 |
|
companies listed on NC |
366 |
|
business sector |
Gaming |
|
companies in the sector |
44 |
|
offering/sale of shares |
Public offering of 70,050 series C shares |
|
value of the offering/sale |
Value of the offering of series C shares: PLN 2,003,430 |
|
issue/selling price |
Issue price of series C shares: PLN 28.60 |
|
reference price |
PLN 28.60 |
|
company valuation* |
PLN 31,049,733 |
|
value of introduced instruments* |
PLN 30,640,610 |
|
% free float (under 5% in shares subject to the application |
31.99% |
|
free float value* |
PLN 9,803,079 |
|
% free float (under 5% in all shares) |
31.57% |
|
free float value* |
PLN 9,803,079 |
|
Authorised Advisor |
INC S.A. |
*as at the reference price of PLN 28.60
Issuer’s history and business
The Issuer’s legal predecessor, Drago Sp. z o.o., started operations in 1997 and specialised in the production of games by order. In 2018, the Company changed its business model and decided to start the production of games on its own account: the first proprietary game, Treasure Hunter Simulator, was released on 6 December 2018 and within 24 hours generated revenue (net of distribution cost) which more than recouped the production cost. The change of the Company’s name to DRAGO entertainment Sp. z o.o. was registered in 2019 and the change of its legal form to joint-stock company was registered in July 2020.
The Company’s core business is to produce AA (mid-budget) games in an 18-24 month development cycle, accompanied by the production of simulator games in a 12-15 month production cycle in parallel. As at the date of the information document, the Issuer is developing a first-person story shooter/survival game Red Frost. In parallel, it is developing indie premium simulator games (low-budget high-quality productions developed in line with quality standards of AA games). In the opinion of the Issuer, the business model ensures the development of well-rounded AA games while maintaining current liquidity owing to a diversified revenue mix based on sales of multiple low-budget simulator games.
The Issuer’s productions are available in the premium model, that is, for a fee paid in advance which unlocks access to the full content. The Issuer has not implemented and is not planning to implement any additional micro-payments for players to improve the quality of the game (i.e., adding a game board or unlocking a level).
The Issuer’s selected financials (PLN):
|
|
31.12.2019 |
31.12.2020 |
|
Equity |
584,442.00 |
3,429,441.22 |
|
Liabilities and provisions |
131,343.60 |
136,174.83 |
|
Total assets |
715,785.60 |
3,565,616.05 |
|
Net revenue |
392,009.25 |
458,216.57 |
|
Net profit |
106,217.04 |
(456,126.19) |
|
Total net cash flows |
(159,849.90) |
1,638,934.04 |
|
Cash – closing balance |
18,586.99 |
1,657,521.03 |
Public offering of series C shares
Subscription start date: 14 September 2020
Subscription end date: 23 September 2020
Allotment date: 1 October 2020
Shares offered in the subscription: up to 70,050 series C shares
Shares allotted in the subscription: 70,050 series C shares
Price of the shares: PLN 28.60
The series C shares were paid in cash by bank transfer to the Issuer’s account.
Shares allotted to: 67 natural persons
Offering value: PLN 2,003,430
Shareholders
|
Shareholder |
Number of shares |
% of votes |
% of share capital |
|
Lucjan Mikociak |
300,390 |
27.67% |
27.67% |
|
Movie Games S.A. |
159,405 |
14.68% |
14.68% |
|
Joanna Tynor Anna Rutkowska |
159,030 124,065 |
14.65 11.43% |
14.65 11.43% |
|
Other |
342,765 |
31.57% |
31.57% |
|
Total |
1,085,655 |
100% |
100% |
The Issuer’s share capital according to the entry in the business register is PLN 108,565.50 divided into 1,085,655 ordinary bearer shares with a nominal value of PLN 0.10 per share including:
- 1,001,300 series A ordinary bearer shares,
- 14,305 series B ordinary bearer shares,
- 70,050 series C ordinary bearer shares.
The application for introduction concerned series A and series C shares.