M.O.B.A. Network completes the acquisition of Magic Find

INSIDER INFORMATION: M.O.B.A. Network AB (”M.O.B.A.” or the ”Company”) has today completed the acquisition of all shares in the American company Magic Find Inc (”Magic Find”), for a consideration of USD 12 million of which USD 9 million has been paid upon closing and USD 3 million will be paid in December 2021. The acquisition of Magic Find has been published by press release on 19 May 2021. Pro forma figures for the full year 2020 for M.O.B.A. including Magic Find shows that revenues amounted to approximately SEK 331 million with an EBITDA of approximately SEK 40 million.

M.O.B.A. has today completed the acquisition of the American company Magic Find. The acquisition broadens M.O.B.A.'s offering with six new gaming communities within games such as Minecraft, World of Warcraft and Hearthstone with a total of approximately 200 million visits in 2020. In addition, Magic Find's MCN network Union For Gamers ("UFG") adds over 1,000 content creators to the group. In 2020, UFG content creators had over 20 billion views on YouTube. M.O.B.A. sees significant synergies between the companies mainly through improved joint advertising, increased direct sales, expansion of streamers via M.O.B.A.'s communities and network advantages through traffic and audience sharing. In 2020, Magic Find's revenues amounted to approximately SEK 296 million with an EBITDA of approximately SEK 24 million. Pro forma figures for the full year 2020 for M.O.B.A. including Magic Find shows that revenues amounted to approximately SEK 331 million with an EBITDA of approximately SEK 40 million.

“We are pleased to state that M.O.B.A. today has completed the strategic acquisition of Magic Find. The acquisition of Magic Find is transformative and an important part of our strategy to grow through acquisitions and offer more attractive platforms for users within our communities. We also add a strong team to the M.O.B.A. family that wants to develop their business and add high competence and long experience from YouTube and Twitch. Based on Magic Finds previous result, M.O.B.A.’s revenue, result and cash flow will improve significantly through the acquisition", says Björn Mannerqvist, CEO of M.O.B.A.

The total consideration amounts to USD 12 million, of which USD 9 million has been paid upon closing and USD 3 million will be paid in December 2021. No additional purchase price will be paid. As previously communicated, a part of the initial consideration will be paid through cash raised through an accelerated book building procedure, which was communicated and conducted on 19 May 2021. As part of the accelerated book building procedure, 170,358 shares were issued within the existing mandate granted by the Annual General Meeting held on 25 February 2021 and 364,642 shares were issued subject to the subsequent approval by the Extraordinary General Meeting (the "Directed Issues"). A General Meeting held by postal voting, to resolve to approve the part of the Directed Issues decided by the Board of Directors’ subject to the subsequent approval of the General Meeting, will be held on 7 June 2021. Shareholders corresponding to 53.2 percent of the number of outstanding shares in the Company, including 170,358 newly issued shares issued within the existing mandate have undertaken to vote in favour of the Board's decision to issue the part of the Directed Issues that exceed the mandate authorized by the Annual General Meeting on 25 February 2021. Shareholders corresponding to an additional 8.4 percent of the outstanding shares in the Company have informed their intention to vote in favour of an approval which implies that the total number of shares that has undertaken or informed intention in favour of the Directed Issues amount to 61.5 percent.

Subject to the approval at the Extraordinary General Meeting of the Board of Directors’ decision on a new issue and following the registration of the Directed Issues with the Swedish Companies Registration Office, the total number of shares in the Company will amount to 2,238,582. The Directed Issues entails a dilution of approximately 23.9 percent of the number of shares and votes in the Company, based on the total number of shares in M.O.B.A. after the Directed Issues. The share capital will through the Directed Issues increase with SEK 535,000 from SEK 1,703,582 to SEK 2,238,582.

Advisors

ABG Sundal Collier has acted as Sole Bookrunner and the law firm Delphi has acted as legal advisor to the Company in connection with the Directed Issues. ABG Sundal Collier and KPMG acted as financial advisors and the law firm Delphi and Westerlund Law acted as legal advisers in connection with the acquisition of Magic Find.

White & Case Advokat AB acted as the legal advisor to Magic Find in connection to the transaction.

This disclosure contains information that M.O.B.A Network AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 27-05-2021 20:15 CET.

Stockholm 2021-05-27

Björn Mannerqvist, VD

Mail: info@wearemoba.com

Web: https://wearemoba.com

Certified Adviser

FNCA Sweden AB | +46(0)8-528 00 399| info@fnca.se

M.O.B.A Network AB runs several global online communities for gaming - and esportfans.

The Company's community brands includes the worlds largest League of Legends strategy community, MOBAFire.com, Counterstats, Leaguespy, RuneterraFire & SMITEFire.com (SMITE).