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New listing of RED SQUARE GAMES S.A. on NewConnect

RED SQUARE GAMES S.A. was newly listed on NewConnect on 14 November 2023.

RED SQUARE GAMES S.A. is the 360^th company listed on NewConnect and the 13^th new listing on NewConnect in 2023. 

Key information

* at the reference price proposed by the Authorised Advisor and the Market Maker for the series A to G shares equal to PLN 25.00

Issuer’s history and business

The company NOVA-TEK S.A. with its registered office in Kraków was incorporated on 20 October 2023. The company’s share capital was PLN 100,000.00 divided into 400,000 series A shares and 600,000 series B shares with a nominal value of PLN 0.10 each. The founders of the company were Mr Karol Błażewski, Mr Dawid Pałka, Mr Michał Gołkowski, Mr Marcin Zahorowicz and Gravier Venture Capital S.A.

On 18 December 2020, the Company entered into the following agreements with Mr Michał Gołkowski (as Author):

- an agreement on the transfer of copyright, under which the Issuer was granted, among others, the right to produce and distribute a TV series based on Michał Gołkowski’s series of novels entitled “Sybirpunk”. Under the agreement, the Author transferred to the Company the exclusive right to authorise, with the right of subrogation, the exercise of the dependent copyright in the series of novels by the Issuer. The agreement is for an indefinite period;

- a licence agreement under which the Issuer was granted the exclusive right to produce computer games and board games based on Michał Gołkowski’s series of novels entitled “Sybirpunk”. The licence agreement was concluded for a period of five years, after which time it is transformed into a licence granted for an indefinite period. Under the agreement, the Issuer agreed to pay a one-off fee of PLN 40,000.00 gross.

The Company completed work on the SibirPunk RPG role-playing game in June 2021. In the same period, the Issuer conducted a crowdfunding campaign for the SibirPunk RPG game (product crowdfunding) on www.wspieram.to. The campaign raised approximately PLN 101,000. As of November 2021, Rebel sp. z o.o. became the exclusive distributor of the SibirPunk RPG role-playing game for the Polish market. December 2021 saw the release of the “unplugged” game SibirPunk RPG and its additional components, as well as logistics to individual customers who made a purchase as part of the crowdfunding campaign.

In March 2023, the Issuer entered into an agreement with Sylen Studio S.A. concerning the provision of IT and programming services by the Issuer. The agreement provides for the delegation of specialists to provide services for the implementation of a video game project for Sylen Studio S.A. The degree of involvement of individual specialists will depend on the individual stages of the Company’s own production as well as the production implemented for Sylen Studio S.A. Under the agreement, the Issuer will be entitled to a fee of PLN 300,000.00 gross for each month of service provision. The agreement was concluded for an indefinite period.

The video game entitled SlavicPunk: Oldtimer for PC on Steam and GOG sales platforms was released on 28 June 2023.

The Issuer’s business focuses on two segments:

• Computer games, i.e., the production of own computer games and games commissioned by other entities. Within this segment, the Company currently employs a team of thirty specialists with many years of experience gained at the largest gamedev studios, such as CD Projekt, Flying Wild Hog, CI Games.

• “Unplugged” games, for which the Issuer acts as producer and co-publisher. This segment will market products such as board games, role-playing games and card games in physical and digital form. Thanks to the knowledge and experience of the staff, the Company successfully developed and marketed the role-playing game SibirPunk RPG and additional components for the game in 2021. Rebel sp. z o.o. became the exclusive distributor of the Polish edition of the game and, as a result, the Company’s product found its way to many shops throughout Poland.

Selected financial data of the Issuer’s Group (PLN):

48,000 series F shares – public offering

The public offering of Series F Shares started on 5.08.2022 and ended on 21.09.2022.

Series F Shares were taken up by 24 entities.

The issue price of the shares was PLN 25.00.

Value of the offering: PLN 1,200,000.

60,000 series G shares – public offering

The public offering of Series G Shares started on 6.12.2022 and ended on 6.12.2022.

Series G Shares were taken up by 1 entity, i.e., Gravier Investment ASI S.A.

The issue price of the shares was PLN 25.00.

Value of the offering: PLN 1,500,000

Shareholders

Source: Issuer

Financial instruments newly listed on NewConnect: 1,328,000 shares including:

• 400.000 series A ordinary bearer shares,
• 600.000 series B ordinary bearer shares,
• 75.000 series C ordinary bearer shares,
• 125.000 series D ordinary bearer shares,
• 20.000 series E ordinary bearer shares,
• 48.000 series F ordinary bearer shares,
• 60.000 series G ordinary bearer shares.