GAME

Frequently asked questions

• What are the terms for shareholders?

  The entrance fee is 6 % of the amount to be deposited, a one-off charge for entry into the group.
  Management fee is a 1 % annual fee charged from the total assets managed.
  Success fee is a variable percentage from game items sales profits.

• How do I calculate the value of a share to be bought/sold?

  The Company calculates the value of the shares using the net assets value method, whereunder the Companies’ net assets are calculated based on management balance sheet statement posted on the website.

  The share price is the business Net Asset Value (NAV) divided by the amount of issued shares. Mainly, the assets consist of the rights for trading computer game items, which are daily reevaluated based on STEAM indexes (click Steam Community Market). The item value is reevaluated at the fair value equal to the minimal contract price effective during a session on the platform.

  The business portfolio value is published on the website https://fundingames.ru/ every week.

• How do we buy items in a game?

  Items are bought by traders employed by the Company at the expense of and on behalf of the Company. Employees submit bank statements confirming the deposit of funds into the market platform account, and item receipt confirmations in the form of STEAM transaction reports.

  All rights to the use of items, inter alia, the rights to buy/sell, as well as the right to claim sales revenues, belong to the Company as stated by employment agreements and job descriptions of AO employees.

• When and how do I withdraw cash?

  1. Selling shares to an investor at any time. The Company shall cooperate in searching for investors when selling shares.
  2. Payout of dividends if the Company has available cash received through the sale of the fund’s assets under management or through additional issue of the shares. The Company can announce a dividend payout to all fund’s shareholders proportionate to equity interest.
  3. Share redemption: an investor may sign a share put option agreement with the Company. According to the terms of the Agreement, the Company shall redeem the investor’s shares upon his/her request. The shares are sold at a 10 % discount during the first year of the possession thereof.

• How Company issues equity?

  We summon a pool of investors, for whom shares are going to be issued. We prepare documentation, issue additional ordinary shares, include the shares in the shareholder register at the registrar and transfer them (process the transfer of ownership) from the company’s to the investing shareholder’s account with the Company registrar’s support.

• What risks do shareholders have?

  -Item depreciation: would it be possible? Under what circumstances?

  Sometimes, items do lose value. In general, it happens during sales events on market platforms. However, we usually buy items after these events with the item price adjusted according to the market demand. Unlike the stock market, the game item market does not allow short selling. This minimizes the risk of a depreciation.

  -Zero demand: would it be possible and under what circumstances?

  Only unique and rare items can have zero demand. During a pre-investment analysis, we analyze item’s and similar items liquidity from the historical perspective.

  -STEAM account blockings: scenarios and what we can do to prevent it?

  We conclude deals in line with the dealing rules and limits set by STEAM. Our employees have accounts registered pursuant to STEAM’s policy. If any account may have been blocked we send a message to the support service. Once there is a confirmation that there are no violations, the account is usually reactivated.

  Reduced popularity of a game and items: what are possible scenarios? What’s the timeline?

  We deem the possibility of a rapid decline in CS:GO’s popularity as very low. However, we perform daily monitoring of game and player statistics news in CS:GO and other games. In case of a highly improbable popularity decline we can use the following strategies:

  - Restructuring of the portfolio into items from other games
  - Selling part of the portfolio

• How do we protect shareholders?

  The Company attracts funds in the form of a Convertible Loan Agreement (CLA). The interested party shall credit the company according to the convertible loan agreement. Whereupon, the Company additionally issues new shares and converts the loan to ordinary Company’s shares. Investors are the Company’s shareholders, so they can take decisions concerning the management of the Company through the General Shareholders Meeting. The shareholders’ rights are fully reserved by the applicable Russian laws. Shareholders’ shares are held by a reliable depository JSC “Status”, part of the Sberbank group.

• How good is the teams' experience?

  - Who are the founders?

  The founders are businessmen with more than 10 years of experience in game item trading.

  - Existing expertise

  The team embraces a variety of competencies, such as finance, IT, marketing, law, taxation, and risk management. Also, the team includes a former partner to the largest auditing and consulting group - Deloitte, Kazbek Dzalaev, who has an experience of more than 15 years of financial and technological projects implementation.

  You can find details in the Team section, in the Investors Deck presentation via your registered personal account in fundingames.ru.

• How can competitors influence the market?

  Currently, the game item market is mainly presented by private players. According to our information there is no other company similar to us. Entry of the market by institutional investors will increase liquidity and positively impact the demand and item indexes, as well as increase earnings. However, it may also increase the volatility of item prices and force us to reevaluate our investment portfolio.

• What is the market size and which market share G.A.M.E. is planning to take?

  We estimate that in 2021 game item market will capitalize around $4 billion. Our goal is to increase assets under management up to USD 17 mln by 2023 or up to 0.5 % of the general global market.