Stillfront Group AB: Press Release from Extraordinary General Meeting in Stillfront Group AB (publ) 18 April 2017

Press release from extraordinary general meeting in Stillfront Group AB (publ) 18 April 2017 due to the introduction of an incentive program for current and future key employees in the group.

Stillfront Group AB (publ) (“Stillfront” or “Company”) held an extraordinary general meeting on 18 April 2017 where it was resolved on a directed issue of not more than 299,189 warrants, each warrant entitles to subscription of one (1) share in the Company, entailing an increase of the share capital of not more than SEK 209,432.30 if all warrants are exercised. The purpose of the directed issue of warrants is to constitute an incentive for the group’s current and future key employees.

The warrants were issued on the following principal terms:

The right to subscribe for the warrants was, with deviation from the shareholders’ preferential rights, granted to the Company’s wholly owned subsidiary AB Coport 590 (under change to Todavia AB), reg. no. 559100-2893 (the “Subsidiary”), with the right and the obligation to transfer the warrants on market terms to current and future key employees within the Company or its subsidiaries that are considered to be of particular importance for the group’s development in accordance with instructions from the board of directors of the Company.

The number of warrants that each person within the respective category shall have the right to acquire is stated in the board of directors’ complete proposal. The board of directors of the Company will make the final decisions regarding allocation of the warrants in accordance with the framework stated in the proposal. The warrants will be acquired against payment of a market value premium which has been established by the board of directors in accordance with accepted methods of calculation (Black & Scholes.)

The general meeting further approved the transfer of warrants from the Subsidiary within the framework of the proposed program.

Each warrant entitles to the subscription of one (1) share in the Company at a subscription price corresponding to 200 per cent of the volume weighted average price of the share from and including 3 April 2017 up to and including 18 April 2017. The subscription price may not be lower than an amount corresponding to the quota value of the shares in the Company.

Subscription of shares in accordance with the terms and conditions of the warrants may take place from and including 15 May 2020 up to and including 1 June 2020. It was thereby noted that the general meeting resolved on an adjustment of the period for subscription of shares using the warrants compared to the suggested period in the notice [to avoid that the subscription period falls within the so called closed period in connection with the Company’s quarterly report].

The increase of the share capital may at full exercise of the warrants amount to a maximum of SEK 209,432.30 distributed among 299,189 shares, corresponding to a dilution of approximately 4,8 per cent.

It is noted that the resolution on the directed issue of warrants and the Subsidiary’s transfer of warrants was adopted by the general meeting with a qualified majority (i.e.  by shareholders holding more than nine-tenths of both the votes cast and the shares represented at the general meeting).

For additional information, please contact:

Jörgen Larsson, CEO at Stillfront
Phone: +46 70 321 18 00
E-mail: jorgen@stillfront.com
Sten Wranne, CFO at Stillfront
Phone: +46 705 851258
E-mail: sten@stillfront.com

About Stillfront

Stillfront is an independent creator, publisher and distributor of digital games – with a vision to become one of the leading indie game creators and publishers. Stillfront operates through six near-autonomous subsidiaries: Bytro Labs in Germany, Coldwood Interactive in Sweden, Power Challenge in the UK and Sweden, Dorado Online Games in Malta, Simutronics in the United States and Babil Games in UAE and Jordan. Stillfront’s games are distributed globally. The main markets are Sweden, Germany, the United States and MENA. For further information, please visit www.stillfront.com.

Selected games

Stillfront’s portfolio includes games across multiple platforms. Unravel, developed by Coldwood in collaboration with Electronic Arts, won 20+ awards at E3 and gamescom and was released in February 2016. Supremacy 1914 and Call of War are high-immersion war strategy games developed by Bytro Labs. ManagerZone is a sports management strategy game launched in 2001. DragonRealms and GemStone IV are MUD-style games with a very loyal player base. Lara Croft Relic Run(TM) is a popular mobile game developed by Simutronics. Tank Storm and Admiral are mobile strategy games with very strong player bases, published by Babil Games.
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This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 12.20 CEST on April 18, 2017.