Subject: Notification of an administrative decision issued by the Polish Financial Supervision Authority (KNF)
Legal basis: Article 17(1) MAR – confidential information
With reference to current report No. 10/2022 the Management Board of ManyDev Studio SE (the “Company”, “Issuer”) hereby announces that today, on September 16th 2022, the Company has received a decision dated on August 26th 2022 from the Financial Supervision Authority (KNF).
According to this decision, the KNF imposed on the Company:
- a fine in the amount of PLN 1,200,000 stating that the Company, in connection with the preparation of the annual report for the financial year 2016, incorrectly fulfilled the information obligation referred to in article 56 (1) (2) (b) of Act on Public Offering and the conditions for introducing financial instruments to the organized trading system and on public companies (Journal of Laws of 2021, item 1983, as amended, hereinafter: “Act on Public Offering”), in the wording in force before the entry into force of the Act on March 9, 2017 amending the Act on Trading in Financial Instruments and Certain Other Acts (Journal of Laws of 2017, item 791, hereinafter: “Amending Act 2”):
- Through incorrect valuation of assets available for sale – bonds issued by Zamzaw sp. z o.o. and Słoneczne Inwestycje sp. z o.o., which resulted in distortion of the value of assets and financial result for 2016;
- Due to the lack of additional information to the item “Other” in the amount of PLN 3,266,000, presented in the financial statements for the financial year 2016 under note 24 to the item “other receivables”.
- A fine in the amount of PLN 1,300,000 for stating that the Company, in connection with the preparation of the annual report for the financial year 2017, incorrectly fulfilled the information obligation referred to in Article 56 (1) (2) (b) of the Act on Public Offering, as amended by the Amending Act 2 “:
- Through incorrect valuation of available-for-sale financial assets – bonds issued by Raczam sp. z o.o. in liquidation, which resulted in a distortion of the value of assets and financial result for 2017.
In particular, KNF indicated that:
- The annual report for financial year 2016 and the annual report for financial year 2017, which published the financial statements for 2016 and 2017, were not fully informative as they omitted the data of the bond issuers, causing, among other, uncertainty as to the value of the Issuer’s presented assets and financial result,
The decision of the Financial Supervision Commission in question is not final and may be appealed against in the form of a request for reconsideration by the Financial Supervision Authority or a complaint to the Provincial Administrative Court. The Company intends to submit an application for reconsideration of the case.