Manydev Studio SE

Legal Proceedings Report • Sep 16, 2022

CurrentReport no. 18/2022

_#160;

Subject

Notificationof an administrative decision issued by the Polish Financial SupervisionAuthority (KNF)

Legalbasis

Article17(1) MAR - confidential information

Withreference to current report No. 10/2022_#160;theManagement Board of ManyDev Studio SE (the _quot;Company_quot;, _quot;Issuer_quot;) herebyannounces that today, on September 16th2022, the Company hasreceived a decision dated on August 26th2022 from theFinancial Supervision Authority (KNF).

Accordingto this decision, the KNF imposed on the Company:

1)_#160;_#160;_#160;_#160;afine in the amount of PLN 1,200,000 stating that the Company, inconnection with the preparation of the annual report for the financialyear 2016, incorrectly fulfilled the information obligation referred toin article 56 (1) (2) (b) of Act on Public Offering and the conditionsfor introducing financial instruments to the organized trading systemand on public companies (Journal of Laws of 2021, item 1983, as amended,hereinafter: _quot;Act on Public Offering_quot;), in the wording in force beforethe entry into force of the Act on March 9, 2017 amending the Act onTrading in Financial Instruments and Certain Other Acts (Journal of Lawsof 2017, item 791, hereinafter: _quot;Amending Act 2_quot;):

_#183;_#160;_#160;_#160;_#160;_#160;_#160;_#160;Throughincorrect valuation of assets available for sale - bonds issued byZamzaw sp. z o.o. and Słoneczne Inwestycje sp. z o.o., which resulted indistortion of the value of assets and financial result for 2016;

_#183;_#160;_#160;_#160;_#160;_#160;_#160;_#160;Dueto the lack of additional information to the item _quot;Other_quot; in the amountof PLN 3,266,000, presented in the financial statements for thefinancial year 2016 under note 24 to the item _quot;other receivables_quot;.

2)_#160;_#160;_#160;_#160;Afine in the amount of PLN 1,300,000 for stating that the Company, inconnection with the preparation of the annual report for the financialyear 2017, incorrectly fulfilled the information obligation referred toin Article 56 (1) (2) (b) of the Act on Public Offering, as amended bythe Amending Act 2 _quot;:

_#183;_#160;_#160;_#160;_#160;_#160;_#160;_#160;Throughincorrect valuation of available-for-sale financial assets - bondsissued by Raczam sp. z o.o. in liquidation, which resulted in adistortion of the value of assets and financial result for 2017.

Inparticular, KNF indicated that:

_#183;_#160;_#160;_#160;_#160;_#160;_#160;_#160;Theannual report for financial year 2016 and the annual report forfinancial year 2017, which published the financial statements for 2016and 2017, were not fully informative as they omitted the data of thebond issuers, causing, among other, uncertainty as to the value of theIssuer's presented assets and financial result,

Thedecision of the Financial Supervision Commission in question is notfinal and may be appealed against in the form of a request forreconsideration by the Financial Supervision Authority or a complaint tothe Provincial Administrative Court. The Company intends to submit anapplication for reconsideration of the case.