The Board of Directors of Next Games Corporation has adopted a new share-based incentive program

NEXT GAMES CORPORATION COMPANY RELEASE February 28, 2020 at 10:00

The shareholders of Next Games Corporation (the “Company”) have on 21 May 2019 resolved to authorize the board of directors of the Company to resolve on issuances of shares in the Company and option rights entitling thereto so that the total number of shares may, pursuant to the authorization, be increased by a maximum of 1,500,000 shares in the aggregate.

The board of directors of the Company has on 27 February 2020 approved a new share-based incentive program (“Program”). The Program is part of the incentive and commitment scheme of the Company and the option rights entitling to shares in the Company can be issued based on it to all current and future employees, consultants acting in a key role for and management members of the Company and its group companies. Unless otherwise decided by the board of directors, option rights issued under the Program are issued to the recipients without consideration. Shares and option rights entitling to shares issued under the Program may increase the amount of shares by a maximum 1,500,000 shares in the aggregate.

The theoretical market value of the Program is approximately EUR 405.000, which is equal to 1,5 million times the value of a single option. The value of a single option has been calculated by using the Black-Scholes option pricing model. Following assumptions were used to determine the option value: Share price EUR 0.86.  Strike price EUR 0.91, Maturity five years, risk free interest 0% and volatility 39%. Fair value calculation also takes into account the probability that option subscription requirements are not fulfilled.

Each option right issued under the Program entitles the recipient to subscribe for one new share in the Company. Unless otherwise decided by the board of directors, the subscription price payable for each share subscribed for pursuant to the option rights issued under the Program shall be equal to the arithmetic mean of the closing prices of the Share on the Nasdaq First North Finland market place for ninety (90) days immediately preceding the grant date of each option right added with a 5 percent premium. The subscription price will be booked in its entirety into the Company’s invested unrestricted equity reserve.

The subscription period for shares issuable pursuant to the option rights issued under the Program commences as of the first registration of the Program with the Finnish Trade Register and expires on 31 December 2027. The option rights entitle to share subscription during the subscription period in accordance with the vesting schedule agreed in the option agreement between the Company and the recipient. Unless otherwise agreed in the option agreement, the default vesting schedule applicable to all recipients of the option rights shall be such that the option rights granted to a recipient entitles to share subscription in 25 percent annual instalments each full one (1) year following the grant date. Unless otherwise decided by the board of directors, share subscription is additionally subject in each case to the recipient continuously providing services to the Company or its group companies as an employee, consultant or management member.

Unless otherwise decided by the board of directors, if a recipient’s employment or service relationship with the Company or its group companies ceases for any reason, all unexercised option rights that do not yet entitle to share subscription taking into account the agreed vesting schedule will automatically terminate and be forfeited to the Company. The recipient is entitled to exercise option rights entitling to share subscription within thirty (30) days from the date of the termination of the employment or service relationship, at which time any option rights remaining unexercised will automatically terminate and be forfeited to the Company.

Additional information:

Annina Salvén

Chief Financial Officer

+358 (0) 40 588 3167

Certified Adviser: Danske Bank A/S, Finland branch, tel. 8

Next Games

Next Games (Helsinki Nasdaq First North: NXTGMS) is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead games redefines the way franchise entertainment transforms into highly engaging service-based mobile games. In summer 2018, Next Games launched The Walking Dead: Our World, which utilizes cutting edge AR technology and is powered by Google Maps. Currently Next Games is working on multiple new games based on popular entertainment franchises including, Blade Runner Nexus, for the popular Blade Runner franchise and a mobile game based on Netflix’s Stranger Things. For more information head to