State of the 5PG

#1

There’s a rumor spreading around the DotD:A world chat that it’s not only Mouse who left 5th Planet Games but almost the entire staff as well? And that DotD are DotD:A are already abandoned games? Please shed some light

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#2

Yes, all of the Devs have been let go from Ascension. There is currently no further development going on at the moment, although the Devs said when they left that it’s possible that the game will be actively worked on again in the future.

As for the original DotD, while most of the staff have been let go it continues to have a small team headed by Dev_Lovelace. It still has weekly updates and new content.

#3

According to Lovelace Mouse left voluntarily however the others were let go of when 5PG dissolved the studio responsible for all DotD titles.

The following is from a 5PG Investor Statement.

32-2019 5th Planet Games Will Reduce Costs with Almost 1M DKK per Month in Order to get Closer to Profitability
COPENHAGEN, November 5th, 2019: 5th Planet Games A/S (OAX: FIVEPG) has a clear
ambition of becoming a profitable company. But we must also admit that so far,
we have failed in delivering profitability, including in Q4, 2019 due to a
disappointing performance of Dawn of the Dragons: Ascension.

We have therefore decided to cut our cost base significantly. The logic is as
follows:

a. Today we are burning approximately DKK 1,700,000 per month.

In order to reduce this amount significantly, we have decided to implement the
following cost-saving actions:

b. Close down our Rocklin studio, which will result in savings of DKK 800,000
per month.

c. Cut costs in our Copenhagen office, which will result in savings of DKK
150,000 per month.

When the above-mentioned initiatives in Rocklin and Copenhagen has been fully
implemented, it will leave our offices with a monthly burn rate of DKK 150,000
in Copenhagen and DKK 600,000 in Berlin.

With the upcoming releases of the Doodle Jump game, currently in soft launch, in
February 2020 (new date) and the Adventures of Tintin game in March 2020, we
believe that we have implemented the short-term actions necessary to close this
now much smaller gap between costs and revenue, and thereby reach profitability.

5th Planet Games is still in a passable position regarding liquidity and
capital. As of October 31, 2019, the company has cash of DKK 5.0 million in the
bank and the expectation of the future cash situation is DKK 5.3 million as per
December 31st, 2019. In case of future capital needs, we still have access to
additional NOK 34,218,000 as a result of our agreement with Formue Nord Fokus
A/S.

Medium-term, 5th Planet Games will have the following focus:

  1. Build attractive Match-3 games in Berlin on the standard game engine that is
    currently being developed for the upcoming Tintin game. We have a great team of
    specialists in Berlin with a proven track record in other very successful
    companies.

  2. Acquire 3rd parties IP’s, which we have a proven track record in doing, and
    team up with small world-class independent 3rd party studios who are specialists
    within their specific category of games. This reduces both financial risk and
    enables us to publish many more games, as we do not need to build and run all
    the studios ourselves.

Long-term, 5th Planet Games will take on the role of being a consolidator within
the industry. We will operate from the following philosophy:

  1. Many smaller profitable gaming companies are looking to sell their company
    either partly of fully.

  2. These small profitable gaming companies will typically not “move the needle”
    for the large companies, therefore they often have difficulties securing their
    exit.

  3. 5th Planet Games is an interesting match for these small gaming companies,
    due to our status as a publicly listed company with a management team that has
    experience in building scaled businesses.

  4. We see a tremendous opportunity to accelerate our growth by acquiring these
    sub-scale gaming companies.

  5. Today, public gaming companies are traded on an average of 16x their EBITDA.

In order to reach the next step, there are some immediate practicalities to be
implemented:

  1. When closing our Rocklin studio, this has a negative impact accounting wise
    of approximately DKK 15.5 million impairment loss on non-current assets and
    consequently covered by the rules of capital loss in Danish Companies Act
    section 119. Therefore the company will reestablish the share capital by
    reducing it from DKK 25,528,601 to DKK 2,552,860.10 through a nominal share
    price reduction from DKK 0.50 to DKK 0.05.

  2. A shareholder announcement calling for an Extraordinary General Meeting to
    support the above-mentioned actions will follow soon.

As a consequence of the cost reductions at our Copenhagen office, an agreement
has been made with CFO Anders Søgaard who will leave the company. Furthermore,
an agreement has been made with board members Jesper Theill Eriksen and Kevin
Terkelsen, who will leave the board soon.

We would like to thank them all for their great effort in supporting 5th Planet
Games on our journey so far.

Henrik Nielsen, CEO
5th Planet Games A/S

#4

Game is stuck at West Berine. When are they gonna open it? Last patch was 11/01.