We will present the latest insights from the red-hot gaming sector and our position in it this week. We will also give you an exclusive preview of our irresistible prizes.
But first we would like to explain why and how we are moving to a better home.
One important reason for finding a better home is remuneration. As a potential unicorn in the making, we need to offer the world’s finest talent and our partners strong incentives. But like many technology companies, we have found that our desired incentive plans are too costly and complicated to run in Sweden.
You may have seen that gaming giant King recently left Sweden for the UK. Several tech start-ups and Spotify are also considering an exit. Sweden clearly no longer looks like the optimal jurisdiction for modern, growth-oriented companies like Mowjow.
There is also a major restriction we are all familiar with, namely the requirement for electronic share deposit accounts. Around two thirds of the Mowjow investor community doesn’t have one. The Swedish regulatory environment offers us no flexibility. It requires that every single share is registered electronically.
As a start-up committed to shareholder value we focus our resources strategically on our product and our growth. Operating a public company with more than 600 shareholders in Sweden doesn’t offer us the regulatory flexibility we need going forward.
The administrative burdens are simply too high, especially considering that there is a far better home for Mowjow.
Our New Home
The solution which has been implemented is the closure of the holding company in Sweden and the opening of our new holding company in London. This is where we have our operating subsidiaries and we can now run our intragroup transactions more smoothly.
London also gives us enhanced access to capital markets and greatly broadens our potential investor base. It is simply a much better home for Mowjow.
London offers us the right flexibility when it comes to shareholder provisions. London is also a place where we can run remuneration schemes that maximize value for us. There are also specific tax benefits.
The goal of listing on Nasdaq First North when the time is right remains firmly in place and the moving process is smooth and efficient.
The process of transferring all operative subsidiaries and assets to the new holding company has been completed and the former Swedish holding company is currently being wound up.
You will receive a formal offer to unconditionally transfer your shares to our new holding company in the near future. Value is unaffected and the process is highly automated and free of charge.
Your investment in Mowjow remains fully intact and the outlook for an imminent, substantial increase in shareholder value is stronger than ever. We will explain why in our our upcoming newsletters.
Thank you for your support and I look forward to sharing good times ahead.
All the best,
Executive Chairman & Founder
This newsletter was originally published on August 2, 2016.