FROZEN WAY SA (24/2024) Zawarcie umowy wydawniczej na grę "Honeycomb: The World Beyond"

Current

report no.

24/2024

Date

of preparation:

2024-10-02

Subject:

Conclusion of a publishing agreement for the game _quot;Honeycomb: The World

Beyond_quot;

Legal

basis:

Art. 17 item 1 of the Market Abuse Regulation - inside information

Contents:

The

Management Board of Frozen Way S.A. with its registered office in Cracow

(hereinafter: the Issuer) hereby informs that on October 1, 2024 a

publishing agreement (hereinafter: the Agreement) was concluded between

the Issuer and Snail Games USA Inc. with its registered office in Culver

City, USA (hereinafter: Snail Games), under which Snail Games became the

publisher of the game _quot;Honeycomb: The World Beyond_quot; (hereinafter: Game).

According

to the Agreement Snail Games has undertaken to pay the Issuer the lump

sum remuneration specified in the Agreement (hereinafter: the

Remuneration) in three equal installments after completion of the

following milestones:

-

the first installment will be paid within a week of signing the

Agreement;

-

the second installment will be paid within a week of accepting the Game

for final testing;

-

the third installment will be paid within 30 days after the premiere of

the Game in the versions for personal computers (hereinafter: PC) and

PlayStation 5 _amp; Xbox Series consoles (hereinafter: Consoles).

In

exchange for the Remuneration paid to the Issuer, Snail Games will

acquire the right to share part of the net profit from the sales of the

Game. Snail Games' share in the net profit from the sales of the Game

will decrease after Snail Games receives a refund of the Remuneration

paid to the Issuer. The Game will be released from Snail Games'

publishing accounts. Additionally, Snail Games has undertaken to cover

the costs of publishing and marketing the Game, which will not be

included in the Remuneration and thus will not affect the Issuer's share

in the net profit from the sales of the Game.All

Intellectual property rights to the Game, with the exception of

publishing rights and Snail Games' share in the net profit from the

sales of the Game, remain with the Issuer.

In

connection with the conclusion of the Agreement, the Issuer decided to

increase the Game cost budget for PC and Consoles announced in ESPI

report no. 1/2024 from PLN 5.25 million to PLN 8 million. The

simultaneous release of the full version of the Game for PC and Consoles

has been postponed from September 2024 to June 2025.

The

Issuer's Management Board decided to publish the above information due

to the fact that it may have a significant impact on the financial and

material situation of the Issuer and a potentially significant impact on

the valuation of the Issuer's financial instruments.

Disclaimer:

This English language translation has been prepared solely for the

convenience of English speaking readers. Despite all the efforts devoted

to this translation, certain discrepancies, omissions or approximations

may exist. In case of any differences between the Polish and the English

versions, the Polish version shall prevail. The Issuer, its

representatives and employees decline all responsibility in this regard.

More information on page: http://biznes.pap.pl/en/reports/espi/all,0,0,0,1

kom espi zdz