Subject: Decision concerning the future of The Witcher: Monster Slayer project by Spokko sp. z o.o., a subsidiary of CD PROJEKT S.A., and planned reorganization within the CD PROJEKT Group
Legal basis: Art. 17 of MAR – inside information
The Management Board of CD PROJEKT S.A. with a registered office in Warsaw (“the Company” or “Issuer”) hereby discloses that the Extraordinary Shareholders’ Meeting of Spokko sp. z o.o. (“Spokko”), a subsidiary of the Issuer, has voted to gradually phase out The Witcher: Monster Slayer, which is the project carried out by the Spokko team. In consequence, among other: (i) further development of the project will be discontinued; (ii) distribution of the game to new gamers on Google Play and Apple App Store will end on 31 January 2023; (iii) access to the game will be disabled for players on 30 June 2023, which has the effect of fully shutting down the project on that date.
The decisions are consistent with the main vectors of the CD PROJEKT Group’s strategy update (i.e. the published CD PROJEKT Group Long-Term Strategic Growth Outlook document), which specifies that the Group intends to focus on its core business activities while carrying out mobile projects in collaboration with external partners.
In conjunction with the expected future involvement of part of the Spokko team and resources in other projects underway at CD PROJEKT RED, the Management Board of the Company, together with the Extraordinary Shareholders’ Meeting of Spokko, recommend that a reorganization of the CD PROJEKT Group be carried out in 2023 by merging the Company (as the surviving company) with Spokko (as the target company) pursuant to Art. 492 § 1 item 1 of the Commercial Companies Code. Information on formal agreement, by both companies’ management boards, concerning the merger plan will be disclosed by the Issuer by way of a current report.
Spokko has not heretofore been subject to consolidation in the scope of the CD PROJEKT Group’s consolidated financial statements. The Management Board of the Company furthermore announces that, as a consequence of the decision to phase out The Witcher: Monster Slayer project and the planned reorganization, there is reason to carry out revaluation of Spokko shares. The Management Board will therefore order an asset impairment test. Revaluation of Spokko shares will be reflected in the financial result and balance sheet total in separate and consolidated financial statements for 2022. The total value of Spokko shares, as listed in the Issuer’s books on 5 December 2022 was 32.4 million PLN.
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. CD PROJEKT, its representatives and employees decline all responsibility in this regard.