JoWood Expects Heavy Losses
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[adhoc]: JoWooD announces shareholders' meeting due to expected lossesThanks RPGWatch.
Vienna, Austria, 22 September 2010; The managing board of publicly-listed JoWooD Entertainment AG yesterday notified the supervisory board that the losses set forth in the Q2 financial statements will probably equal or exceed half the share capital of JoWooD Entertainment AG.
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'¢ Losses amounting to half the share capital likely in Q2 financial statements
'¢ Managing board to call extraordinary shareholders' meeting
'¢ Drawing up of Q2 financials taking longer than expected
The managing board of publicly-listed JoWooD Entertainment AG yesterday notified the supervisory board that the losses set forth in the Q2 financial statements will probably equal or exceed half the share capital of JoWooD Entertainment AG. The main reasons are credits granted in connection with price reductions, returned goods and requirements for value adjustments related to games launched in the market last year.
Accordingly, the managing board will call an extraordinary shareholders' meeting, in the course of which it will present the financial situation of the company as well as strategies and concrete measures for the successful continuation of the business.
The completion of the interim financial statements for the second quarter of 2010, most recently announced for the end of September, will be postponed because material accounting and valuation issues could not be resolved in the course of drawing up the Q2 financials.
The extraordinary shareholders' meeting will proably be held during the first half of November 2010. Until then, the creation of the financial statements should be at a stage sufficient to enable the shareholders' meeting to take appropriate measures on the basis of the Q2 financial statements.
The launch of the game ArcaniA planned for 12 Oktober 2010 is not affected by the above. The game will score with numerous new features and JoWooD expects the new release to contribute significantly to the revenues in the second half of 2010.
