Current Report No. 11/2023

This regulatory disclosure, issued on March 28, 2023, by the Polish game development studio PCF Group S.A. (People Can Fly), reveals previously delayed insider information regarding investment negotiations with the South Korean publisher Krafton, Inc. The primary purpose of the communication is to fulfill transparency requirements under the European Union’s Market Abuse Regulation (MAR) following the formal conclusion of an investment agreement.

The negotiations, which officially commenced on March 19, 2023, centered on Krafton acquiring a 10% equity stake in PCF Group through a new share issuance. This capital increase was previously authorized by the company’s Extraordinary General Meeting on February 28, 2023. Beyond the equity investment, the discussions explored potential strategic cooperation regarding the future publishing of specific titles currently in production by the studio.

Management initially elected to delay the public disclosure of these talks to protect the company’s legitimate interests. The rationale provided suggests that premature transparency could have jeopardized the negotiation process and negatively impacted the success of the planned public offering. By waiting until the investment agreement was finalized on March 28, the company aimed to ensure that potential investors had definitive information rather than speculative data that could lead to an incorrect assessment of the company’s value.

The scope of this disclosure is primarily relevant to the Polish capital market and international institutional investors, though it includes strict legal disclaimers prohibiting distribution in jurisdictions such as the United States, Australia, Canada, and Japan. The document emphasizes that while negotiations were successful, such discussions do not inherently guarantee the finality of share takeovers until all legal and offering conditions are met.