GDEV Announces One-For-Ten Reverse Share Split

Rhea-AI Summary

GDEV Inc. (NASDAQ: GDEV) has announced a one-for-ten (1:10) reverse share split of its ordinary shares, effective August 28, 2024. Trading on a split-adjusted basis will begin on August 29, 2024, under the existing symbol "GDEV" but with a new CUSIP number. The company aims to improve marketability and liquidity of its shares through this move.

Key points:

• No fractional shares will be issued; cash will be paid for fractions
• The split affects all shareholders uniformly
• Voting rights and preferences remain unchanged
• ESOP, warrants, and options will be proportionally adjusted
• No shareholder approval is required for this action

Positive

• Potential improvement in marketability and liquidity of GDEV shares
• Possible increased interest and trading in GDEV shares due to higher share price
• Uniform impact on all shareholders, maintaining proportionate ownership

Negative

• Reduction in total number of outstanding shares
• Potential cash payout for fractional shares, which may result in minor involuntary shareholder dilution
• Short-term market volatility often associated with reverse splits

Insights

Financial Analyst

GDEV's 1:10 reverse stock split is a strategic move aimed at boosting share price and improving marketability. While this doesn't change the company's fundamental value, it could have several implications:

• Potential increased institutional interest due to higher share price
• Risk of reduced liquidity if trading volume doesn't adjust proportionally
• Possible short-term volatility as the market adjusts to the new price

Investors should note that this move often signals management's confidence in the company's future prospects. However, it's important to focus on GDEV's underlying financial performance and growth strategies in the gaming industry for long-term value assessment.

Market Research Analyst

The reverse split reflects GDEV's attempt to enhance its market position in the competitive gaming industry. Key considerations:

• Nasdaq compliance: This move may help GDEV meet minimum bid requirements
• Investor perception: Higher share prices often associated with more established companies
• M&A potential: Could facilitate future stock-based acquisitions

While the split doesn't directly impact GDEV's market share or game performance, it could improve the company's ability to attract strategic partnerships or investment. Investors should monitor how this financial maneuver translates into tangible business growth and improved market positioning in the gaming sector.

LIMASSOL, Cyprus, Aug. 21, 2024 (GLOBE NEWSWIRE) -- GDEV Inc. (NASDAQ: GDEV), an international gaming and entertainment company (“GDEV” or the “Company”) announced a one-for-ten (1:10) reverse share split of its ordinary shares, no par value per ordinary share (the “Reverse Share Split”). The Reverse Share Split will become effective at 4:01 p.m. Eastern Time on August 28, 2024 (the “Effective Date”). The Company’s ordinary shares will begin trading on a split-adjusted basis when the Nasdaq Global Market (“Nasdaq”) opens for trading on Thursday, August 29, 2024 (i.e., the first trading day following the Effective Date) under the existing trading symbol “GDEV,” but the ordinary shares will trade under a new CUSIP number, G6529J209. The Company’s outstanding public warrants will continue to be traded under the symbol “GDEVW” and the CUSIP number for such public warrants will remain unchanged.

The Company believes that the increased market price of its ordinary shares expected as a result of implementing the Reverse Share Split could improve the marketability and liquidity of its ordinary shares, and will encourage interest and trading in its ordinary shares. The Company’s Board of Directors has determined that the Reverse Share Split is advisable and in the best interests of the Company and its shareholders, and approved the Reverse Share Split by written resolution on August 8, 2024. Pursuant to the BVI Business Companies Act (as amended) and the Company’s Memorandum and Articles of Association, the Company’s Board of Directors is authorized to effect the Reverse Share Split without the approval of the Company’s shareholders. Accordingly, no shareholder vote, consent or approval is required or will be sought in respect of the Reverse Share Split.

As a result of the Reverse Share Split, every ten issued and outstanding GDEV ordinary shares will automatically be converted into one ordinary share. No fractional shares will be issued as a result of the Reverse Share Split. Instead, in lieu of any fractional shares to which a shareholder of record would otherwise be entitled as a result of the Reverse Share Split, the Company will pay cash (without interest) equal to such fraction multiplied by the average of the closing sales prices of the ordinary shares on Nasdaq during regular trading hours for the five consecutive trading days immediately preceding the Effective Date of the Reverse Share Split (with such average closing sales prices being adjusted to give effect to the Reverse Share Split). Except for adjustments that may result from the treatment of fractional shares as described below, the Reverse Share Split will affect all shareholders uniformly. The proportionate voting rights and other rights and preferences of the holders of the Company’s ordinary shares will not be affected by the Reverse Share Split (other than as a result of the payment of cash in lieu of fractional shares). The Reverse Share Split will not change the terms of the Company’s ordinary shares or require that any amendment to the Company’s Memorandum and Articles of Association be made.

The Reverse Share Split will also affect the GDEV ordinary shares issuable under the Company’s 2021 ESOP as well as the Company’s outstanding warrants and options. Generally, the documents pertaining to these instruments include provisions providing for proportionate adjustments to be made in the event of a reverse share split. Specifically, the exercise price and the number of ordinary shares issuable pursuant to these instruments will be adjusted pursuant to the terms of such instruments in connection with the Reverse Share Split.

Additional information regarding the Reverse Share Split can be found in the Company’s Report on Form 6-K furnished to the Securities and Exchange Commission on August 21, 2024.

About GDEV

GDEV is a hub of gaming studios, focused on development and growth of its franchise portfolio across various genres and platforms. With a diverse range of subsidiaries including Nexters and Cubic Games, among others, GDEV strives to create games that will inspire and engage millions of players for years to come. Its franchises, such as Hero Wars, Island Hoppers, Pixel Gun 3D and others have accumulated hundreds of millions of installs worldwide. For more information, please visit gdev.inc.

Contacts:

Investor Relations

Roman Safiyulin | Chief Corporate Development Officer

investor@gdev.inc

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.

The forward-looking statements contained in this press release are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s 2023 Annual Report on Form 20-F, filed by the Company on April 29, 2024, and other documents filed by the Company from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

FAQ

When will GDEV's reverse share split become effective?

GDEV's one-for-ten reverse share split will become effective at 4:01 p.m. Eastern Time on August 28, 2024.

How will GDEV's reverse split affect the stock symbol and CUSIP?

GDEV will continue trading under the symbol 'GDEV', but will have a new CUSIP number: G6529J209. The public warrants symbol 'GDEVW' and CUSIP remain unchanged.

What happens to fractional shares resulting from GDEV's reverse split?

GDEV will pay cash for fractional shares, based on the average closing price for the five trading days preceding the effective date, adjusted for the split.

Will GDEV's reverse split affect shareholder voting rights?

No, the proportionate voting rights and other preferences of GDEV shareholders will not be affected by the reverse split, except for adjustments due to fractional shares.