Report from the Extraordinary General Meeting of Cherry AB (publ) on 21 November 2018

At the extraordinary general meeting of Cherry AB (publ), corporate identity no. 556210-9909 (the “Company”) on 21 November 2018, the following resolutions were adopted. The board of directors’ complete proposals have previously been published and are available in Swedish on the Company’s website, www.cherry.se, under the section General Meeting.

Resolution on election of a new board member of the Company
It was resolved, in accordance with the nomination committee’s proposal, to elect Rolf Åkerlind as a new board member, that the board of directors shall consist of four (4) board members without deputies and that Rolf Åkerlind’s remuneration shall amount to SEK 250,000 on an annual basis.

For more information on the newly elected board member, it is referred to Cherry’s website.

Resolution on the acquisition of the remaining 5 percent of the shares in Game Lounge Sweden AB
The extraordinary general meeting resolved, in accordance with the board of directors’ proposal, to approve the acquisition of the remaining 5 percent of the shares in Game Lounge Sweden AB, corporate identity no. 559170-2856 (“Game Lounge”) to a maximum of MSEK 260 on the following conditions:

  1. The purchase price consists of three parts and can amounts to at the most MSEK 260.
  2. The first part of the purchase consideration is fixed and amounts to MSEK 100 to be paid in cash when Cherry is registered as owner of the shares.
  3. The second part of the purchase consideration amounts to MSEK 60 and is conditional on Game Lounge’s consolidated EBITDA for the period 1 January 2019 to 30 June 2019 exceeding MSEK 90. In the event that the target of MSEK 90 is not reached as per 30 June 2019, the measurement period will be extended until 30 September 2019, at which time, Game Lounge’s consolidated EBITDA shall amount to at least MSEK 150.
  4. The third part of the purchase consideration amounts to MSEK 100 and requires Game Lounge’s consolidated EBITDA to exceed MSEK 300 for any consecutive four calendar quarter period between 1 July 2019 and 31 December 2021, or between 1 October 2019 and 31 December 2021 in the event that the measurement period for the second part of the purchase consideration is extended in accordance with the above.
  5. The Company is entitled to pay all or part of the second and third part of the purchase consideration in class B shares in the Company.
  6. The Agreement is subject to the approval of the general meeting. Provided that such approval is given, the acquisition is intended to be carried out within 10 business days from the date of the extraordinary general meeting.

For further information, please contact:

Anders Antonsson, IR & Communications: +46 709 994 970, anders.antonsson@cherry.se

This information was submitted for publication on 21 November 2018, at 10.50 a.m. CET.

CHERRY IN BRIEF

Cherry is an innovative and fast-growing company within gaming, entertainment and media. Established in 1963, today Cherry operates through five diversified business areas: Online Gaming, Game Development, Online Marketing, Gaming Technology, and Restaurant Casino. The Group’s objective is to grow organically in combination with strategic acquisitions of fast-growing companies. Cherry employs some 1,400 people and has about 9,325 shareholders. The Company’s class B share is listed on the Nasdaq Stockholm exchange, Mid Cap segment. More information is available at www.cherry.se