Square Enix acquired its fourth tranche of 90,000 subscription warrants in PCF Group S.A. on June 30, 2022, at an issue price of 50 PLN per share.
The issuance was triggered after PCF Group’s revenue from agreements with Square Enix surpassed the 180 million PLN threshold.
Square Enix now holds a total of 360,000 warrants, which equates to approximately 1.2% of PCF Group’s total share capital and voting rights.
Square Enix has the right to convert these warrants into Series C ordinary shares at any time until the December 31, 2025, deadline.
The current transaction is part of a broader August 2021 investment agreement that allows for a maximum of six warrant tranches.
If Square Enix exercises all six potential tranches, its total stake in the Polish developer is projected to reach approximately 1.8% of the share capital.
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.
