Raport Bieżący Nr 14/2018

PlayWay S.A. has formalized a strategic investment agreement with Krzysztof Krej to restructure and recapitalize the development studio Frozen District. This agreement, executed in March 2018, marks a significant shift in the studio's corporate structure, increasing its share capital from 26,500 PLN to 512,775 PLN through the issuance of 1,835 new shares. Following this transaction, PlayWay holds an 80% controlling interest in the entity, while Krej retains a 20% stake. The partners intend to eventually transform the limited liability company into a joint-stock company.

The primary operational focus of Frozen District is the production of video games, specifically the title House Flipper. Under the terms of the agreement, intellectual property rights for House Flipper are transferred from the individual partners to the studio. PlayWay has also secured a distribution agreement to manage the title’s sales on PC platforms outside of Steam, as well as future releases for Xbox One and PlayStation 4. The PC version was scheduled for release on April 12, 2018.

Financial governance within the agreement stipulates that dividends will only be paid if annual profits exceed 1 million PLN. Profits below this threshold, or amounts required to sustain operations for two years (capped at 2 million PLN), must be reinvested into the company’s reserve capital or development activities. Additionally, while previous shareholders sold their stakes to Krej, they remain integrated into the company as a key development team responsible for completing Warlocks 2 and future projects. This restructuring consolidates PlayWay’s influence over the studio’s commercial trajectory ahead of major product launches.