Molten Ventures Regulatory News (GROW)

1 September 2020

Draper Esprit plc

("Draper Esprit", "the Group" or the "Company")

Forward share sale of Zynga Inc ("Zynga") stock

Draper Esprit (LSE: GROW, Euronext Growth: GRW), a leading venture capital firm investing in and developing high growth digital technology businesses, today announces the forward share sale of its stock in Zynga, a global leader in interactive entertainment, for approximately £47 million in cash.

In July, Zynga completed its acquisition of Draper Esprit portfolio company Peak Games, the Istanbul-based creator of Toon Blast and Toy Blast, paying for all of the issued and outstanding common shares in approximately equal proportions of cash and Zynga common stock.

As previously announced the anticipated fair value of the Peak Games sale is approximately £88 million and the Company received the initial cash proceeds (net of escrow balances) of approximately £39 million in July. As a result of the forward share sale, which was undertaken with a global investment bank, Draper Esprit will receive approximately £44 million of the value of the share consideration in cash in the coming week. The remaining portion is anticipated to be released at the end of the original lock-up period in January 2021.

Net cash balances (net of £35 million current drawn debt) upon receipt of these funds will be approximately £60 million.

Martin Davis, Chief Executive Officer of Draper Esprit, commented:

"We are pleased to have entered into this forward share sale as a means to realise the full cash value for shareholders from Peak Games significantly ahead of the original timeline. This provides us with even greater firepower to invest in exciting high growth technology businesses today."

-ENDS-

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