PCF Group shareholders have decided on an issue of shares to finance the updated development strategy of the People Can Fly Group

Warsaw, 28 February 2023

The extraordinary general meeting of PCF Group has adopted a resolution on issuance of up to about 5.85 million Series F shares, from which the company expects to raise about PLN 205 to 295 million. The proceeds will be earmarked entirely for increasing the size of the development teams working on three games from the AAA segment—Project Dagger, Project Bifrost and Project Victoria—which People Can Fly intends to release in the self–publishing model. The growth of self-publishing is a major element up the group’s updated development strategy, with the strategic goal of generating at least PLN 3 billion in cumulative revenues in 2023–2027.

Under the adopted resolutions, the issue of Series F shares will be conducted as a private subscription (not requiring publication of a prospectus), directed exclusively to qualified investors or investors taking up shares for a total value of at least EUR 100,000. The issue will be conducted excluding the subscription rights of existing shareholders, but shareholders holding at least 0.25% of the company’s shares will have a priority right to take up new shares enabling them to maintain their existing proportion of the share capital.

The final number and price of the offer shares will be determined through an accelerated bookbuild.

“Under the updated development strategy of the People Can Fly group presented one month ago, we will self-publish most of the games from our portfolio,” said Sebastian Wojciechowski, CEO of People Can Fly. “Our 5-year financial plan shows that in the longer term, the move to self-publishing will build greater value for the company and the shareholders. Achievement of these plans will obviously require securing adequate financing. The current macroeconomic situation and high interest rates are impacting the availability and terms for raising debt financing, which is why we decided to conduct an issue of new shares. Our strategic goal is to generate at least PLN 3 billion in cumulative revenues in 2023–2027. That’s nearly five times greater than in 2018–2022. We believe that this five-fold growth in the scale of operations justifies a dilution of the capital of not quite 20%.”

People Can Fly is currently working on seven projects at various stages of advancement. The game code-named Project Thunder, for virtual reality (VR) platforms, developed by the subsidiary Incuvo, will be launched later in 2023. Incuvo is also working on Green Hell VR, which launched last year on the Oculus Quest 2, Oculus Rift and Pico platforms and PC, and this year is slated for release on further VR platforms (HTC and Sony NGVR).

Meanwhile, four games from the AAA segment are now in the pre-production phase. The company plans to release three of them—Project Dagger, Project Bifrost and Project Victoria—in the self-publishing model, with launches planned for 2025–2026. And the launch of the game code-named Project Gemini, which People Can Fly is developing in the work-for-hire model with the group’s long-time publisher, Square Enix, is planned for 2026.

Another game in the People Can Fly pipeline is Project Red, from the compact-AAA segment, currently at the concept/ideation stage.

The company plans to devote the proceeds from the issue of new shares entirely to increasing the size of the development teams working on projects Dagger, Bifrost and Victoria. These three games are being developed by People Can Fly teams in North America. They currently number from 30 to 70 people each, and ultimately will number 120 to 150, depending on the project.

In addition, for the purpose of implementing the new strategy, the company intends to use its own cash, operating funds generated by the company, and other available sources of financing, which will not dilute shareholder ownership.

More information on the updated development strategy of People Can Fly is available at: https://peoplecanfly.com/investors-en/#groups-strategy

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