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New listing of DEMOLISH GAMES S.A. on NewConnect

DEMOLISH GAMES S.A. was newly listed on NewConnect on 6 September 2023.

DEMOLISH GAMES S.A. is the 360^th company listed on NewConnect and the seventh new listing on NewConnect in 2023.

Key information

* at the reference price of PLN 20 set as equal to the issue price of series C shares

Issuer’s history and business

Demolish Games S.A. was incorporated on 6 July 2020. Its core business is the production and publication of computer games, in particular simulation games. The Company’s business is focused on the production of its own games and the financing and publication of games developed by external teams; the Issuer has not released any games on its own to date. As at the date of this document, Demolish Games S.A. is a member of the Ultimate Game S.A. group of companies as an associated company (38.26% of the Issuer’s share capital and votes at the General Meeting). Ultimate Games S.A. is part of the PlayWay S.A. group of companies.

The Company’s main asset is the “Demolish & Build” game series where the player plays the owner of a construction company focusing on demolishing buildings. In 2020, the Issuer acquired the rights to all components of the game from Ultimate Games S.A. with the option of creating ports of these games (which will be published by Ultimate Games S.A.) and acting as publisher of the PC versions of the games “Demolish & Build” and “Car Demolition Clicker”. The 2017 and 2018 versions of “Demolish & Build” are currently the Company’s main source of revenue, and the game “Demolish & Build 3” is in production with a budget of approximately PLN 1.5 million, scheduled for release in Q1 2024.

The second business line is the financing and publication of games developed by external teams. In this business segment, the Issuer plans to release 2 to 5 games over a period of 24 months. To date, the Issuer has verified two productions: “WW2 Underground” and “Malone in Nightmares”. As for the former, the Issuer was the originator and full copyright holder. During the pre-production stage, the Company cooperated with Glob Games Studio Sp. z o.o. Regarding “Malone in Nightmares”, full economic rights are held by the creator (an external team, Who Made This?), who undertook to transfer them to the Issuer at the time of providing the whole game or its phase. As at the date of the Information Document, work on these productions is not continuing. As a result of unsatisfactory reception of the productions by players, the Company wrote off the expenditures incurred on the pre-production of the games in the amount of PLN 53,822.00 in 2022. In addition, the Company created a concept for a game titled “Airship Captain”, but the actual work is scheduled to commence in the second half of 2023. On 1 October 2022, an agreement was concluded with a natural person concerning the development by that person of a computer game under the working title “Airport Simulator”. The planned completion date for the production is H1 2024.

The Issuer plans to release ports of the produced games on selected platforms such as Nintendo Switch, Xbox, Playstation or VR. As of the date of this Document, the game “Demolish & Build 2018” has been released for the following platforms in addition to the PC version: Xbox One, Playstation, Nintendo Switch and VR; the game “Car Demolition Games” has been released on the following platforms in addition to the PC version: Xbox One, PlayStation and Nintendo Switch; “Demolish & Build 2017” has been released for Nintendo Switch. Two additional ports are being developed for “Demolish & Build 2017” by 100 Games Ltd. The contractor is to make ports of the game for Xbox One (planned completion date: Q3 2023) and Playstation (planned completion date: Q1 2024). In addition, the Company’s production plan includes ports for the game under development “Demolish & Build 3”. In addition to the PC version, the game will be released for Nintendo Switch, Xbox One and Playstation. The ports are to be made by Black Rose Projects S.A.

The Issuer’s team consists of seven people, while some of the work is outsourced to external teams. The Company’s strategic goal is to produce and release one to two of its own games, with a production period of no more than 24 months, and to finance and release two to five games developed by external teams.

The Company’s share capital amounts to PLN 230,000 and is divided into 2,300,000 shares with a nominal value of PLN 0.1 each, including:

• 2,000,000 series A ordinary bearer shares;
• 250,000 series B ordinary bearer shares;
• 50,000 series C ordinary bearer shares.

Issuer’s selected financials:

*quarterly, unaudited

Shareholders

• Ultimate Games SA – 880,000 shares representing 38.26% of the share capital and votes;
• Other shareholders – 1,420,000 shares representing 61.74% of the share capital and votes;

Financial instruments newly listed on NewConnect:

• 2,000,000 series A ordinary bearer shares;
• 250,000 series B ordinary bearer shares;
• 50,000 series C ordinary bearer shares.