GAMIVO shareholders at the Extraordinary General Meeting decided to carry out a share buyback and the issue of free shares. This is an alternative to the dividend payment, which the AGM abandoned, as a method of distributing profit for the record year 2022.
The buyback will amount to up to 20 percent of the company’s own shares, and the issue of free shares will happen at a ratio of 1:1, i.e., for every GAMIVO share held, shareholders will receive one free share. The aim of these measures, in addition to distributing profits to shareholders, is to improve the liquidity of the company’s share price.
GAMIVO has had a record year. In 2022, GAMIVO achieved a consolidated net profit of PLN 7.1 million, an increase of 115 percent year-on-year.
– GAMIVO has a significant cash surplus and continues to generate positive cash flow, as demonstrated, for example, in the first quarter of 2023, when we achieved a record profit of PLN 3.5 million. This puts us in a comfortable position to distribute profits to shareholders. One option that provides an alternative to the payment of dividends is the repurchase of own shares. This is a flexible form that allows shareholders to decide for themselves whether they want to participate in the buyback and how many shares to sell. An active share buyback has a positive impact on the liquidity of the company’s listing and we also expect it to contribute to an increase in the valuation of GAMIVO shares, comments Mateusz Śmieżewski, CEO of GAMIVO.
In accordance with the resolution passed at the EGM on 23 May this year, GAMIVO will issue bonus shares at a ratio of 1:1, i.e. for every GAMIVO share held, shareholders will receive one bonus share. As a result, their percentage shareholding will not change and they will hold 2 times as many GAMIVO shares.
– The issuance of bonus shares is another measure aimed at improving the liquidity of the listing and distributing the profit to shareholders, who can decide for themselves whether to keep these funds invested in GAMIVO or encash some of them. Our current proposals are therefore more flexible,” adds Mateusz Smieżewski.
The increase in the company’s share capital through the issue of bonus shares will be paid from the reserve created to finance the bonus shares. It, therefore, does not involve any transfer of funds from shareholders. All shareholders of the company who hold shares as of 30 June 2023 will receive them.
GAMIVO is not slowing down after a record 2022. The company generated PLN 56.3 million in turnover and a record PLN 12.4 million in revenue in Q1 2023. In turn, net profit increased by 124 percent year-on-year to a historic PLN 3.5 million. EBITDA also reached a record high of PLN 4.3 million. This is 82 percent higher than in the first quarter of 2022.
