Goodbye Kansas: Strengthens Working Capital by Renegotiating Existing Loans and Via New Bridge Loans, Adding Total SEK 25million

“The ongoing preferential rights issue as well as the secured bridge loan solve the vast majority of our working capital needs over the coming year. We will continue to seek an appropriate solution to the remaining capital shortage. The dialogues with other creditors and the development of initiatives to support businesses due to the covid give us a positive outlook on the resolution of the remaining capital need. Additionally, we have won large orders and are seeing clear signs that the business is recovering from the pandemic, which puts us in a good position to repay the loan with operating cash flow, ”said Pierre Levin, CEO of Goodbye Kansas Group.

The renegotiation of existing loans and the use of new bridging loans will allow a continuous acceleration of Goodbye Kansas Studios, focus on the launch of large-scale games in the vertical games and applications sector and on the development of intellectual property rights products and scalable solutions. The studio has placed a number of large orders developed in line with pre-covid levels seen and with a significantly larger pipeline of profitable VFX projects compared to the corresponding period in 2020. In Games & Apps, the Hello Kitty-based mobile game, one of the most famous Ips in the world, will be launched smoothly in the second quarter of 2022.

As communicated by the Company on October 4, 2021, the Board of Directors estimates that the Company’s working capital requirement over the next 12 months amounts to approximately 150 million Swedish kronor, for which the issuance of preferential rights will generate a product of approximately 100 million Swedish kronor. In order to meet the remaining capital needs, the Board of Directors of the Company today renegotiated the existing loans and guaranteed the bridging loans, adding a total of 25 million Swedish kronor a group of existing shareholders, closely related parties and external creditors, including Modelio Equity, Brofund Equity and the Chairman of the Board of Directors, By Anders Wärn (10 MEK). Among these loans, a total of 14 million Swedish kronor concern the renegotiation of existing loans and 11 million Swedish kronor are new loans. Loans corresponding to 15 million Swedish kronor have a credit term of 12 months and the balance 10 million Swedish kronor has a credit term of 24 months (if a 12-month extension option is exercised) and an annual interest of 10%. Loans corresponding to 9 million Swedish kronor have an annual interest of 10 percent and an additional additional interest of 0.5 percent for each month started, while the remainder 16 million Swedish kronor have an annual interest of 10 percent. All loans may be prepaid, in whole or in part, at the request of the Company. The loan of the chairman of the board of directors, By Anders Wärn, amounting to 10 million Swedish kronor, requires the approval of an extraordinary general meeting since it is an important transaction with a closely related party.

After obtaining these loans, a deficit of about 25 million Swedish kronor remains in the Company’s estimated working capital requirement for the next 12 months. The Board of Directors continues to have a positive view of addressing this need through funding the company’s existing banking relationships and through the use of extended tax credits tied to the covid support that has been proposed by the government. The proposal means that the tax credits are extended for an additional 15 months and the proposal is expected to come into effect on March 7, 2022.

The bridge financing that the company has now secured means that the company is not likely to use the agreed share commitment of Capital LDA, which is described in the prospectus of the issue of preferential rights.

Supplementary prospectus
Due to the bridge loan financing, the Company will prepare a supplement to the prospectus which has been approved by the Swedish Financial Supervisory Authority (“SFSA“) (Sus. Finansinspektionen) and published on October 4, 2021. The complementary prospectus will be examined and approved by the SFSA before its publication. Investors who have made a request or in any other way accepted to subscribe to the shares of the capital increase before the publication of the additional prospectus have the right to recall their request within two (2) working days following the publication of the additional prospectus. . . Full information will be included in the additional prospectus.

The subscription period for the capital increase will end on October 19, 2021, in accordance with what was communicated previously.

For more information please contact:
Pierre Levin, CEO, Goodbye Kansas Group
e-mail: [email protected] Tel: +46 (0) 73 041 63 93By Anders Wärn, President of the council, Goodbye Kansas Group
e-mail: [email protected]

Goodbye Kansas Group
Goodbye Kansas Group AB (publ) is a leading provider of technology-driven visual content. The company creates award-winning visual experiences for all media and offers products that combine cutting-edge technology with world-class craftsmanship. In order to seize growth opportunities, the Group has created three business areas: Visual content and branding, Intellectual property and products, and Games and applications. Visual Content & Brand offers visual content for film, television and games. IP & Products develops IP for cinema and television, offers virtual reality training solutions and a SaaS platform that visualizes e-merchant products via augmented reality. Games & Apps develops location-based mobile games and offers an application for 3D animation. Goodbye Kansas Group is listed on the Nasdaq First North Growth Market and has studios and offices in Stockholm (HQ), London, Helsinki, Vilnius, Belgrade, Los Angeles, Beijing and Manila.

The company has G&W Fondkommission as a licensed advisor, Kungsgatan 3, Stockholm, Stockholm, email: [email protected], phone. +46 (0) 8-503 000 50.

About Donnie R. Losey

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