The shares could be bought a month ago for PLN 15.50 and the lucky ones got rid of them with a raise of 177%. The new game producer gave a chance for a quick and big profit, but the Polish Financial Supervision Authority has already picked it up. The shares were suspended on the sixth day of trading. The company claims that it was not required to meet the KNF requirement.
- Within a month of the sale of shares in the public offering, it was possible to earn up to 177% on Gaming Factory shares. It was worse in recent days
- The fever on the new video game company was interrupted by the Polish Financial Supervision Authority. Suspended shares due to the non-publication of the report for the first quarter
- The company proves that it did not have to do this. But the report will be prepared by August 3. Investors will have to wait
Investors signed up for Gaming Factory shares at PLN 15.50 until July 1. The company produces video games, mainly simulators. The bakery operating simulator, which is to debut on the market soon, is of the greatest interest. And that gaming companies have recently “taken” on the stock exchange, and there was no problem selling the shares.
Willing was so many that it was necessary to reduce subscriptions by 89 percent. The company mainly sold new shares and obtained PLN 17 million from the issue. They will go to game production and marketing.
The debut was impressive, because from PLN 15.50 spent on rights to shares (after the registration of the issue, they will be converted into ordinary shares), the price reached PLN 29 on the first trading day on July 24, which means a break of 87%. The next two days were even better and the PLN 40 level was broken on Tuesday. Who sold PDAs at the maximum price on that day, i.e. PLN 42.90, this earned 177 percent. I to in less than a month – enrollment ended on July 1.
So much for the good news. Then the profit taking took place and by Thursday the price had dropped to PLN 23.70. And on Friday … the PDA and the shares could no longer be sold. The WSE suspended them at the request of the Polish Financial Supervision Authority. What was the reason?
Mandatory or non-mandatory report?
The Commission informed that in accordance with the applicable regulations, companies are obliged to disclose to the public reports for the first quarter of 2020 until July 29, 2020. And Gaming Factory didn’t do that. Interestingly, the company claims it did not have to do this at all.
“Due to the suspension of trading on the WSE main market in shares and rights to shares of Gaming Factory, the company’s management indicates that the current law does not require it to publish quarterly reports for Q1 2020.” – the company said in a special statement.
According to the management of Gaming Factory, it is subject to the reporting obligation, but only from the date of submission of the application for admitting the shares and the rights to the company’s shares to trading on the WSE, i.e. from 10 July 2020
“The above-mentioned (legal – ed.) Grounds did not require the company to publish quarterly reports for Q1 2020.” – wrote in the statement.
Moreover, as indicated, “in the regulation of the Minister of Finance of April 7, 2020 on the determination of other deadlines for the performance of certain reporting and information obligations (regarding COVID-19), it was decided to temporarily relieve business entities supervised by the Polish Financial Supervision Authority in fulfilling disclosure and reporting obligations “.
The announcement stated that “with regard to quarterly reports and consolidated quarterly reports for quarters starting after December 31, 2019, but not later than May 1, 2020, is extended (term – ed.) by 60 days“Which, according to the company, does not change the fact that it did not have to publish the report.
The report will be there, but you will have to wait
However, she decided not to go to war with the KNF and will prepare a quarterly report. He is going to publish it on August 3. Then it will ask the WSE to suspend the listing. And investors who have not yet managed to realize profits will be able to do so or buy additional stocks, hoping for increases.
In 2019, Gaming Factory achieved over PLN 10 million in revenues, of which sales revenues were only PLN 1.2 million. PLN 5.6 million is a profit from the sale of investments in other companies, and not from the sale of games. The net profit amounted to PLN 4.7 million, but it came mainly from the profit on the sale of investments.
Gaming Factory has only been in business for three years. With the maximum price of PLN 42.90, the value of the company, including 5.6 million shares and 1.1 million rights to shares, would amount to PLN 287 million. At closing price from Thursday (PLN 23.70) this value drops to PLN 159 million. For the issue price, PLN 15.50 is PLN 104 million.
WORTH KNOWING:
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