The Management Board of Cherrypick Games S.A. (“the Company”, “the Issuer”) announces that due to successful efforts to optimise the functionality and mechanics of the monetisation and development of the game My Spa Resort (the “Game”), which have translated into a significant increase in monetisation rates and the achievement of full functionality of the Game, the Company has decided to increase its financial expenditure on player acquisition.

In response to the positive reception by investors of the recent activities undertaken by the Company and the interest in providing financial support for the ongoing activities, the Company decided to raise financing by increasing the Company’s share capital.

In this regard, we would like to inform you that:

1) on 11 April 2019. Mr Marcin Kwaśnica and Mr Michał Sroczyński sold a portion of the shares they held, i.e. a total of 112,050 shares in the Issuer, at a price of PLN 59 per share to investors operating in the video and mobile games industry. The purpose of the sale of shares is to grant a loan to the company with a value equal to the net value of the sold shares and ultimately to take up shares of a new issue of the Company in the same amount.

2) on 11 April 2019. The Management Board of the Company informed the Supervisory Board of its intention to grant a loan to the company and ultimately to take up shares in a new issue and requested that a Supervisory Board meeting be held within no more than seven days with an agenda covering the aforementioned issues.

The manner in which the share capital increase transaction was carried out through the sale of existing shares in the Company by Mr Marcin Kwaśnica and Mr Michał Sroczyński and their subsequent acquisition of new issue shares at a value equal to the net sale price of the existing issue shares is due to the investment policies of the new investors, which involve restrictions on the acquisition of shares not listed on the NewConnect market or the regulated market of the WSE. Accordingly, the existing shareholders sold part of the shares they held and undertook to subscribe for the new issue shares.

In the Company’s opinion, the implementation of the Company’s share capital increase process in such a formula will enable the rapid acquisition of financing, which will accelerate the acquisition of new players in My Spa Resort and, consequently, will have a positive impact on the Issuer’s financial position.