Raport bieżący nr 11/2021

PCF Group S.A. issued this regulatory report to disclose the acquisition of the Phosphor Games development team and the associated financial arrangements used to facilitate the transaction. Originally classified as delayed inside information under European Union Market Abuse Regulations, the details were made public on April 23, 2021, following the formal conclusion of the acquisition process. The transaction marks a strategic expansion for the Warsaw-based parent company into the United States market, specifically targeting the Chicago-based development talent of Phosphor Studios and Phosphor Games.

The acquisition was executed through a newly established subsidiary, People Can Fly U.S., LLC. To fund this expansion and the operational integration of the Phosphor team, PCF Group S.A. provided a $5,000,000 loan to its American subsidiary. This ten-year intercompany loan carries an interest rate of LIBOR plus two percentage points and is secured by the assets of the U.S. entity, including its intellectual property rights. Prior to the acquisition, the two entities maintained a professional relationship through a work-for-hire agreement where Phosphor Games served as a subcontractor for People Can Fly projects.

The decision to delay the public announcement from the initial signing of the letter of intent on March 31, 2021, was a tactical measure to protect the negotiation process. Management concluded that premature disclosure could invite third-party interference, worsen transaction terms, or lead to public misinformation regarding the deal's certainty. By waiting until the acquisition was finalized, the company ensured market stability and the successful execution of its long-term growth strategy within the global gaming industry.