Jumpgate AB: Jumpgate Receives ca 12.2 million SEK in Project Financing for Game Project
Jumpgate has entered into a financing agreement for a new game project for consoles and PC, to be launched in 2025. The total game budget amounts to ca 12.2 million SEK (1.07 million EUR), and is project financed by a consortium comprising MGV Financing AB*, Triple Dragon (a British financing company focusing on game financing) and a license / IP partner. Jumpgate is participating in the financing through a debt facility from Triple Dragon amounting to approximately 2.5 million SEK (0.2175 million EUR) allowing Jumpgate to capture additional upside from the project. In addition to being a financing partner in the project, Jumpgate is entitled to a substantial part of the revenue from the game as developer provided that it's commercially successful. The financing will be paid out in instalments during the project period starting end of June 2024.
The new project is a family friendly title focusing on entertainment in the living room and is developed by Jumpgate studios Tivola and Funatics, where it is possible to utilize current development technology to develop the best possible game. Jumpgate is licensing certain IP rights and trademarks from a world leading innovative partner in Central Europe, which the game will be based on. More details on IP, game world and the partnership will be announced at a later date in connection with the overall project being announced by the licensing / IP partner (including a movie launch and other unique marketing and distribution channels).
"It's a great pleasure to announce that we have entered into a financing agreement for an additional substantial externally financed game project with an attractive risk profile. The development has already started, and the project is a great fit for our business model, with a margin on the development budget and further upside from a successful launch. In this case, we have elected to invest our margin in the project to get more upside in addition to a smaller financial investment. It is also a great match for Tivola, where we can build upon an established engine and, using art assets from our licensing / IP partner, develop a really good game with a limited development budget of ca 12.2 million SEK. We believe this can be a long seller with sales many years beyond launch. We very much look forward to presenting more information on the collaboration and the game project and not the least to be able to announce the project to the players", says Harald Riegler, CEO Jumpgate AB.
*MGV Financing AB is owned by Andras Vajlok and Susana Meza Graham. As Andras Vajlok is also a director of Jumpgate and the agreement is considered a related party transaction, the agreement with MGV will be subject to approval by an extra general meeting.
For additional information
Harald Riegler CEO, Jumpgate AB Phone: +46 (0)705 - 54 73 33 E-mail: harald@jumpgategames.se
About the Company
Jumpgate AB is an independent group of game development companies founded in 2011, comprising five game studios: Nukklear (Hannover), Tivola Games (Hamburg), gameXcite (Hamburg), Funatics (Düsseldorf) and Tableflip Entertainment (Visby). The group develops and publishes its own games as well as developing games and other digital products for external companies. The companies in the group have established collaborations with strong industry partners and exciting product portfolios with large potential. The group is engaged in the global market, distributing games on a worldwide basis and has a large international network. For more information: www.jumpgategames.se
This information is such information Jumpgate AB (publ) is obliged to make public in accordance with the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact persons set out above, at 2024-06-28 17:20 CEST.