Jumpgate

We were successful in obtaining ca 14 million SEK in a loan bundled with free warrants, with most of the lenders being long term shareholders of the company. We expect the greater part, if not all of the loan, to be in effect converted to equity through the exercise of warrants moving forward. About half of the proceeds has been used to refinance current debt. This means that previous debt has been replaced at a lower interest rate, without regular interest payments and with the opportunity that the debt is converted to equity through the warrants. In this way we are lowering financial costs, easing pressure on cash flow and positioning ourselves to strengthen the balance sheet.

Moving forward, Jumpgate is preparing for the release of three full sized games in the second half of 2025. This represents the strongest lineup of titles the company has brought to market to date, and we look forward to seeing the results of these upcoming launches in the short and long term. As detailed below, Jumpgate has been able to secure funding for these parallel productions through its network of investors/publishers as well as existing expertise in securing public funding.

Star Trek: Galactic Journeys is in advanced development, and we are adding console versions to the PC version. With a well-known IP at its base we are looking forward to the reception it will receive. This project funded in part by the publisher and in part by the German government grant that Jumpgate received for the project. Only a smaller portion of the project is financed directly by Jumpgate. With this financial model, Jumpgate has been able to retain substantial upside while taking limited risk, and we will receive revenue from the first sold units.

The cooperation with Europa-Park has gone very well and we have crafted a robust go-to-market plan that is aligned with the park´s ambitions and coordinated with the movie launch. As we are closing in on the launch of the game (see the separate press release) we can reveal that there are already advanced plans for additional content to the game. The base game is partly funded by Jumpgate and partly funded by external partners that include Europa-Park itself. The revenue share is significant to Jumpgate from the first unit sold and we foresee that this game will be able to generate sales for several years through physical sales in the park as well as through digital channels.

The third game is a not yet announced game project that will be published by THQ Nordic. The project is a remaster of a popular game with a strong following. This is generally a proven business model with an attractive risk reward. The development is nearing completion, and the game will be released later this year. The immediate revenue potential for Jumpgate in this project is lower than the other two cases but we believe the game has high potential, will sell for a long time and therefore contribute to Jumpgate over time. This project is fully financed by external parties.

Forecasting revenue for computer games is very difficult for anyone active in the sector. However, given the potential of these projects to be truly transformative for Jumpgate we previously chose to publish some guidance on the revenue potential in the form of three scenarios. They are reiterated below. The scenarios reflect the aggregated revenue for Jumpgate in the first 12 months after the release of each game, noting that the releases will take place at different times and will therefore aggregate over time.

Scenario Revenue (MSEK)
Base scenario 14
Normal scenario 29
Very good scenario 51

The revenue scenarios above are expected to have a substantial positive financial impact on Jumpgate as the projects in large have been financed by external parties. In addition, we believe the games will continue to generate substantial revenue over time and thus have a positive financial impact on Jumpgate for several years to come.

In addition to the above, we were pleased to announce that Jumpgate subsidiaries Funatics, Tivola Games and gameXcite have received approvals of ca 13.3 million SEK in total (1 220 000 EUR) in new public German funding. This will cover production costs for three new game projects with a total development budget ca 30 million SEK (2 800 000 EUR). The rest of the production costs will be covered by partners as previously announced. The access to this kind of very attractive funding is a significant advantage for us allowing us to develop projects will full or next to full external funding while retaining significant upside. With four German studios and a good track record of obtaining these grants, we are well positioned to leverage public funding moving forward.

It is important to keep adding to the pipeline beyond the current three game releases and having the funding in place for these new projects is a significant milestone for us.

The coming six months will be exciting. We are now approaching the subscription period for our coming rights issue, and we hope for strong participation from current and incoming shareholders to help us execute on the ambitious release plan.

Yours sincerely,
Harald Riegler CEO, Jumpgate AB

For additional information

Harald Riegler CEO, Jumpgate AB E-mail: ir@jumpgategames.se

About the Company

Jumpgate AB is an independent group of game development companies founded in 2011, comprising four game studios: Nukklear (Hannover), Tivola Games (Hamburg), gameXcite (Hamburg) and Funatics (Düsseldorf). The group develops and publishes its own games as well as developing games and other digital products for external companies. The companies in the group have established collaborations with strong industry partners and exciting product portfolios with large potential. The group is engaged in the global market, distributing games on a worldwide basis and has a large international network. For more information: www.jumpgategames.se