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New listing of MEGAPIXEL STUDIO S.A. on NewConnect

The company MEGAPIXEL STUDIO S.A. was newly listed on NewConnect on 1 July 2021.

MEGAPIXEL STUDIO S.A. is the 366^th company listed on NewConnect and the 15^th new listing on NewConnect in 2021. 

Key information

* at the weighted average selling price of series A, B and C shares in the last 12 months, equal to PLN 24.36

Issuer’s history and business

The Company was established in July 2018 and registered in December 2018. The Issuer is registered in Gdynia but the Company carries out its activities (as a game developer) in Wrocław, where the core team includes 39 people. The Issuer was established by Forever Entertainment S.A. and Mr Artur Grzegorczyn, who took up 50.00% of the share capital each.

MegaPixel Studio S.A. is a video game developer and specialises in remakes of classic titles. The Company also ports games to Nintendo Switch and other platforms and is planning to create own brands in near future. The Company produces games in co-operation with the world’s gaming giant SEGA (Japan). The Issuer develops remakes of four games under the SEGA licence: Panzer Dragoon, Panzer Dragoon II: Zwei, The House of the Dead, and The House of the Dead 2.

The Issuer produces remakes and ports games under contracts with Forever Entertainment S.A., where Forever Entertainment S.A. is the client and the Issuer is the contractor. The Company develops games and assigns all copyright to the client. In Exchange, the Issuer receives: (i) a one-off game development fee, and (ii) additional fees in the form of participation in revenue from the sale of the game to end users less the one-off fee, taxes, licence fees and charges of game distributors. Under contracts between the Company and Forever Entertainment S.A., the Issuer earns a revenue share (RS) on the sale of produced games as well as a one-off production fee.

In addition to production fees, in amounts which are negotiated at each time, MegaPixel Studio S.A. can earn unlimited profits on produced games. Forever Entertainment S.A. is the publisher of all of the Issuer’s games; from the economic perspective, it pays the Issuer’s revenue share from the sale of games to end users – gamers who buy the Company’s products. Thanks to its stable financial standing, the Company is in a position to develop own productions and source new contracts from third parties.

Issuer’s selected financials (PLN):

Public offering of series C shares

Subscription dates: 28 January 2020 – 29 January 2020 

Number of shares in the subscription: 128,889 series C shares

Number of shares allotted in the subscription: 128,889 series C shares

Price of the shares: PLN 7.50 

The series C shares were paid in cash.

The series C shares were allotted to 8 entities: 7 natural persons and 1 legal person.

Offering value: PLN 966,667.50 

Information concerning sale of shares subject to the application for introduction closed in the last 12 months by shareholders

There were 21 transactions in the Company’s shares at selling prices of PLN 5, PLN 7.50, PLN 25, PLN 33, and PLN 35 per share (weighted average price PLN 24.36) from 14 September 2020 to 12 November 2020.

Shareholders

The Issuer’s share capital according to the entry in the KRS Business Register is PLN 124,000 divided into 1,240,000 ordinary bearer shares with a nominal value of PLN 0.10 per share including:

• 1,000,000 series A ordinary bearer shares,
•    111,111 series B ordinary bearer shares,
•    128,889 series C ordinary bearer shares.

All series A, B and C shares have been introduced to trading.