Raport Bieżący Nr 18/2022

Square Enix Limited has exercised its right to acquire the fourth tranche of Series A subscription warrants in PCF Group S.A., the parent company of the game development studio People Can Fly. This transaction, finalized on June 30, 2022, involves 90,000 warrants, each entitling the publisher to subscribe to one Series C ordinary bearer share at an issue price of 50 PLN per share. This specific price aligns with the valuation established during the company’s initial public offering in late 2020.

The issuance of this fourth tranche was triggered by a specific performance milestone, as PCF Group’s revenues from its agreements with Square Enix exceeded the threshold of 180 million PLN. This development is part of a broader investment agreement established in August 2021, which allows for a maximum of six warrant tranches. With the completion of this fourth stage, Square Enix has now acquired a total of 360,000 warrants, representing approximately 1.2% of the company’s share capital and total voting rights.

Under the terms of the agreement, Square Enix is now eligible to exercise its right to convert these warrants into Series C shares for the first time. While the publisher has until December 31, 2025, to exercise these rights, PCF Group currently has no information regarding the publisher's specific timeline for conversion. Should Square Enix eventually acquire all shares available through the full six tranches, its total stake in the Polish developer is projected to reach approximately 1.8% of the share capital. This strategic financial arrangement underscores the deepening commercial relationship between the developer and the publisher within the global gaming market.