Global Gaming Factory X AB org nr 556551-5938 Reinventing p2p
Memorandum for investment in filesharing sites aGGF acquisition plans While GGF intends to acquire leading filesharing sites, GGF has not and will not enter into an agreement to acquire any of the leading filesharing sites mentioned in this memorandum, until the shares issued have been fully paid for and the concerned site agrees to an acquisition.1
aAll registered and unregistered trademarks shown above belong to their respective owners.
1 GGF entered into an agreement with the owner of The Pirate Bay in 2009. The Pirate Bay's founders and former operators' understanding is that the owner of The Pirate Bay regards the agreement to have lapsed in 2009. Contents Offer to subscribe to new shares 3 Short presentation of the rights issue 4 Presentation of the Company 4 Our Vision 4 Our mission 4 New investments 5 Financial information 6 Trading in shares 8 Risk Factors 8 The Company's board and management 9 Issue Terms and Conditions 13-15 ______Investment Memorandum This investment memorandum is for a pre-emptive issue of shares to raise capital for participation in the acquisition of filesharing sites. The memorandum has been drawn by the Board of Directors of GGF. Definitions In this memorandum, the following definitions are used: The term "Company" or "GGF" means a company registered in Sweden with the corporation number 556551-5938. ”Smartlaunch” means the Danish company Smartlaunch A/S with the corporation number 27 70 60 02. "Filesharing site" means one of the leading filessharing sites. The Pirate Bay, Isohunt, Btjunkie, Torrentz.com, Demonoid.com, Mininova.org och a few other sites are considered to be “leading filesharing sites”. Disclaimer GGFs participation in he acquisition of file sharing sites is associated with high risk, both operationally and financially. An investment in the Company is therefore to be regarded as a high-risk investment. The company may enjoy a strong performance, but an investment in the company may as well be lost in its entirety. All readers of this doscument are therefore requested to carefully read all its contents and in particular with regard to the risks described. a GGF acquisition plans While GGF has plans to acquire leading filesharing sites, GGF has not and will not enter into an agreement to acquire any of the leading filesharing sites, mentioned in this memorandum, until the shares issued have been fully paid for and the concerned site agrees to an acquisition. This investment memorandum may not be distributed in or to a country where the distribution of investment memorandumet requires additional registration or other measures than those required by Swedish law or is in violation of the rules applicable in the country. Neither the company's existing shares or new shares have been or will be registered under the United States Securities Act of 1933 or under the law in of another country. The invesment memorandum may not be distributed to residents of the United States, Australia, Japan, New Zealand, South Africa or Canada, or residents of any other country where such distribution or publication of an investment memorandum is in violation of applicable laws or regulations or require a prospectus registration or measures other than the requirements by Swedish law. This investment memorandum falls under Swedish law. Disputes because of the content of this investment memorandum shall be governed by Swedish law exclusively by Swedish courts. This investment memorandum has not been registered with the Finansinspektionen, the financial regulator in Sweden in accordance with the provisions of Chapter 2, 25-26 § Act (1991:980) on trade in financial instruments, and Commission Regulation (EC) No 809/2004. Stockholm October 6, 2010 The Board of Directors Global Gaming Factory X AB www.globalgamingfactory.com Org No 556551-5938 Offer to subscribe to new shares GGF has 1200 shareholders in Sweden. We have a wholly owned subsidiary in Denmark. We are a publicly traded company, affiliated to Euroclear 2 (former VPC) and quoted on the Mangoldlistan Stock Exchange 3 in Stockholm, Sweden. A valuable asset GGF has a valuable asset in the form of the solid groundwork of legal analysis, market analysis, consumer research and negotiations to obtain entertainment rights that GGF did in 2009 in connection with the Company's attempt to acquire The Pirate Bay. GGF has an opportunity to participate with its know-how in the acquisition of one or several filesharing sites that are planned by foreign investors. GGF intends to finance up to approx. 10% of the purchase price of the filesharing sites that are planned and that agree to be acquired in the first round of financing. The remaining part, approximately 90% will be financed by the foreign investors. a GGF's acquisition plans While GGF intends to acquire leading filesharing sites, GGF has not and will not enter into an agreement to acquire any of the leading filesharing sites mentioned in this memorandum, until the shares issued have been fully paid for and the concerned site agrees to an acquisition. GGFs Board has decided on a rights issue with an issue price of SEK 0.20 per share. The issue price has been determined from GGFs share price, which was SEK 0.20 in very high turnover during the Pirate Bay acquisition attempt in 2009 . The share price of SEK 0,20 gave an indication of the stock market's valuation of GGF and its business plan. After the delisting of GGF from Aktietorget, the perception has spread that GGF will cease business. However, this is not the case. GGF is now listed on the Mangoldlistan Stock Exchange in Stockholm, Sweden and has continued to work on realizing its vision. The Company has concluded several valuable agreements with companies in Denmark, Norway and in the USA. GGF is now prepared to resume trading in its shares and take the step of acquiring leading filesharing sites. Our main reason for the rights issue is that we believe, we will succeed with the acquisition of one or several filesharing sites with the foreign investors. I will be participating in the rights issue and acquisitions. To give GGFs shareholders the possibility of participating in the acquisitions on equal terms, the Board has decided on a pre-emptive rights issue. This means that existing shareholders have pre-emptive rights to subscribe to the new shares. I have undertaken to subscribe to approx 60.48% of the shares which is what I will be entitled to in the rights issue. We know from experience that not all shareholders take advantage of subscribing to new shares fully. We will therefore make it possible for these shareholders to divest their subscription rights by trading them on the Magnoldlistan Stock Exchange so new investors may get a chance to participate in the acquisitions. The record date for the rights issue is October 7, 2010 and trading in subscription rights will take place from October 11 to October 20, 2010. We would like to welcome our current shareholders and also new investors to participate in our upcoming issue. Stockholm, October 6, 2010
Hans Pandeya, CEO of Global Gaming Factory X AB (publ)
2 http://www.ncsd.eu/default.htm 3 http://www.mangold.se/ Short presentation of the new issue Issuance amount GGF will use the capital raised to acquire leading filesharing sites. Rights Issue GGF will increase the company’s share capital by cash payment up to SEK 8 895 543 with 44 477 714 million shares in a rights issue where existing shareholders have pre-emptive rights. Number of shares before issue 311 344 000 Number of shares after issue 355 821 714 The record date for rights issue October 7, 2010 Trading in subscription rights October 11, 2010 - October 20, 2010 Subscription period October 11, 2010 - October 25, 2010 Subscription price 0,20 kr per share Pre-emptive rights Existing shareholders are entitled to subscribe to one new (1) share for every existing seven (7) shares Without pre-emption Existing shareholders who wish to subscribe to shares in excess of pre-emptive rights. The minimum shareholding is 10 000 shares. New investors Minimum shareholding is 10 000 shares. Payment Pre-emptive shares are paid when subscribed to between October 8 and October 22, 2010. Other shares are paid after notice, not later than 3 bank days after notice has been received. Trading in shares and warrants Our shares are listed on the Mangoldlistan Stock Exchange 4 in Stockholm, Sweden. Investor may buy or sell by contacting their personal bank or broker, or place the order electronically via an online broker. ____ Presentation of the company
Our business Global Gaming Factory X AB's is a leading publisher of cafe management software that is used by thousands of cafes globally. Global Gaming Factory X AB has developed a platform for digital distribution of advertising, games and services that uses this infrastructure of thousands of Internet cafes to target the rapidly growing gamer community. In 2009 revenues from the platform reached a modest figure of SEK 2.3million primarily from customers in India and the United States and accounted for 23% of the company's total revenues. Our mission GGF is a media channel to reach visitors of Internet cafes and gaming venues with digital distribution of software and services. GGF uses its wholly owned subsidiary, Smartlaunch's installed base of cafe management software at Internet cafes and gaming centers around the world to reach more than 3 million gamers every month.
4 http://www.bequoted.com/bolagsinformation/default.aspx?bolagId=216 Key events 2009-2010 India January 19, 2009 GGF launches an international ranking system with Sathyam Cinemas' (www.sathyamcinemas.com) gaming division Blur. The company has thus gained a foothold in the fastest growing computer games market in the world. GGF is well positioned in India to develop the Indian market with the agreement with Sathyam Cinemas. As a leading player in the Indian entertainment industry , Sathyam cinemas serves as a valuable showcase in GGFs discussions with potential customers in India.
OneRoof Inc April 21, 2009 GGF enters into an extensive agreement with OneRoof Inc., California, USA. OneRoof acquires GGF's Canadian subsidiary CyberCafePro Inc. The agreement with One Roof Inc secures GGFs access to CyberCafePro internet cafes and their existing infrastructure. GGF will market and deliver services with digital distribution incuding advertising, games, and Money Transfer Services to One Roofs internetkafeer. Furthermore, the agreement ensures that GGF has an important customer's commitment through advertising contracts with One Roof. The deal is worth $1.1 million and accounts for an increase in total sales for 2009 by about 40% compared to net sales in 2008. The sale of the subsidiary CyberCafePro Inc., adds SEK 6 million to GGF, which strengthens our balance sheet considerably. May 2009 GGF identifies next generation filesharing technology as an opportunity with high potential in the digital distribution marketspace. GGF develops a plan to introduce the new technology by acquiring a leading filesharing site and a world class technology company. GGF also works on acquisition agreements with other parties which are never published for confidentiality reasons. aFilesharing implies sharing of computer files with digital content, e.g. music, video, e-books and software over the Internet. To participate in filesharing, a special software application is needed to see what files other users have. The number of file sharers in Sweden is between 1 to 1.5 million. The Pirate Bay and Peerialism AB June 15, 2009 Two weeks before the announcement of The Pirate Bay acquisition, GGF informs the Aktietorget stock exchange about the pending acquisition. GGFs CEO requests Aktietorget to monitor trading in GGF shares. Aktietorget does not inform GGF that Hans Schedin, a Director of Aktietorget is also a Director, partner and one of the owners and of MAQS 5, the lawfirm whose client is in dispute with the founders of Pirate Bay. 6 June 30, 2009 GGF closes the biggest deal in its history when the board announces its acquisition of The Pirate Bay, www.thepiratebay.org, one of the 100 most visited sites in the world. The acquisition is conditional upon GGF receiving funding and that a general shareholders meeting approves the funding and acquisition. GGF also enters into an acquisition agreement with the technology company Peerialism AB to introduce next-generation filesharing technology with the Pirate Bay. This acquisition is also conditional upon GGF receiving funding and that a general shareholders meeting approves the funding and acquisition. August 21, 2009 GGF's plan is well received by the financial market. GGF, whose shareholders have invested 23mkr since 2006, has a market cap of SEK 60 Million. Trading in shares increases dramatically. The share price hoovers around 0,20 kr. To GGF and its shareholders' complete surprise, trading in GGF shares is halted by Aktietorget six days before the acquisition. The trading halt prevents the acquisition from completing as investors will not invest unless shares they receive are trade-able. GGF gets new investor. However, trading has to be allowed for acquisition to complete.
5 http://torrentfreak.com/pirate-bay-prosecution-law-firm-under-attack-090426/ 6 http://www.maqs.com/news/?newsid=295 August 27, 2009 Aktietorget extends the trading halt arguing that funding is not in place. On the same day, the funding and acquisition is approved unanimously at the general shareholders meeting attended by Aktiespararna, Sweden's biggest organization for shareholders demand proof of funding and are given proof. Aktiespararna then demand that trading be resumed which Aktietorget agrees to but does not implement. It is still widely believed that GGF had no funding in place when in fact Aktietorget's trading halt prevented completion. September 9, 2009 GGF fails in its attempt to acquire the Pirate Bay as Aktietorget does not resume trading. GGF is delisted from Aktietorget. September 16, 2009 GGF is listed on the beQuoted Stock Exchange but GGF is damaged by the events and the company slows down to a halt. GGF starts working on a new plan to acquire filesharing sites. September 21, 2010 After one year of hard work, the GGF team is ready to participate in acquisition of filesharing sites by foreign investors. Our vision GGF has a vision of how distribution of content will take place on the web in the future. GGF believes that a filesharing site can operate as a legitimate businesses successfully to the satisfaction of all parties concerned and, furthermore, that filesharers will benefit from the legitimate business. By capturing the value the entertainment industry creates, and ensuring that the revenues will be distributed properly, GGF will strengthen its position in the market. When the entertainment industry benefits, GGF benefits. Our mission Our mission is to acquire and convert filesharing sites into paid-for services. GGF sees the creation of solutions that ensure copyright enforcement as the core of its business. We believe we must protect intellectual property rights and meet the needs and demands of rights holders and content providers. The mission raises immediate concerns about the viability of the business model as filesharers can simply go to the next available filesharing site that provides entertainment free of charge. However, GGFs goal is also to introduce next- generation file-sharing technology to create revenues from filesharing. GGF believes that next generation filesharing technology will replace the outdated bittorrent technology which is the de facto standard today. Next-generation file- sharing technology enables users to share unused resources 7 such as hard drives for storage, and processing power to create cloud services with new revenue streams. These revenue streams are passed on to the users. The more filesharers share, the more money file sharers will make. The most generous of the seeders will in this new resource model be able to reach a level where the revenues they get exceeds their cost of consumption of entertainment 8. The TPB founders reflect on GGF in 2009 “A lot of people are worried. We’re not and you shouldn’t be either! We’ve been working on this project for many years. It’s time to invite more people into the project, in a way that is secure and safe for everybody. We need that, or the site will die. And letting TPB die is the last thing that is allowed to happen! If the new owners will screw around with the site, nobody will keep using it. That’s the biggest insurance one can have that the site will be run in the way that we all want to. And – you can now not only share files but shares with people. Everybody can indeed be the owner of The Pirate Bay now. That’s awesome and will take the heat of us.” techcrunch.com 9 a GGF acquisition plans While GGF intends to acquire leading filesharing sites, GGF has not and will not enter into an agreement to acquire any of the leading filesharing sites mentioned in this memorandum, until the shares issued have been fully paid for and the concerned site agrees to an acquisition. Legalization Plan The Board of Directors believe that the acquired assets can be used in a legally and effectively appropriate way and recommends the shareholders to participate in the rights issue. Background The market for the consumption and distribution of digital media is characterized by a complex landscape
7 http://news.bbc.co.uk/2/hi/8128551.stm 8 http://www.engadget.com/2009/07/18/pirate-bay-owners-announced-give-and-take-model-proclaim-files/ 9 http://techcrunch.com/2009/06/30/swedish-software-firm-acquires-the-pirate-bay-for-77-million/ of both national and international legislation with difficult conflicts between different areas of law – not least in balancing copyright law and rights of privacy. This has led to a widespread global debate among opinion-makers, politicians, academics, the general public and business people. In addition to the responsibilities of the individual Internet user, the responsibility for user-generated material is diversely allocated between different market participants and may also vary from country to country. However, both U.S. and European law place certain obligations on Internet Service Providers (ISP) and on Information Society Service Providers (ISSP) to prevent the distribution of unauthorized or illegal material. Time consuming legislative work and costly litigation are taking place in all parts of the world as a result of the demands posed by the technological evolution on the rules that are to apply.
All market participants, e.g. technology and broadband providers, various service providers, search engines and rights’ holders would all benefit from a clearer legal landscape that enables safe investments and the continued evolution of the information society. GGF wants to accept the challenge to position itself as a respectable participant in the market and contribute to Internet’s infrastructure, with the goal to establish working models for co-operation and a clear allocation of responsibilities on market terms, respecting both intellectual property rights and the rights of privacy.
Links related to the discussion: Music Downloads: Pirates—or Customers? 10 Harvard Develops P2P Client that uses Bandwidth as “Currency” 11 Dawn of the Stupid Network 12 Is Google the next Pirate Bay? 13 UK PCs contain pirated software worth £1 billion Thoughts about the Pirate Bay 14
Technical systems for legalization GGF will legalize file sharing sites by entering into licensing agreements with rights holders. GGF expects to have agreements with the majority of the world's largest music publishers and record labels within three months after the acquisition, with most of the majors in music and film industry within a year and the majority of the global entertainment industry within two years. Until these contracts are in place, during a bridging period, GGF will introduce an technical system to identify copyrighted content and create the possibility for right holders to receive compensation and also the right to determine how the content should be handled, or simply remove the content if they wish. Torrent takedown solution during the bridging period GGF has a model to convert a filesharing site into a legal business by removing all infringing content while at the same time establishing commercial agreements with Content Owners, so that the filesharing site can be transformed into a legitimate service that allows Content Owners to profit from it. As a first step, the Site Owner typically wishes to allow Content Owners to get an overview of anything that is being made available on the filesharing site, which is related to their repertoire, product catalogue, or individual priority and prerelease assets (“Content”). With this information, the Content Owners can chose to either a) be registered as the owner of the Content in order to receive compensation while the Content is allowed to stay on the filesharing site15, or b) have the Content removed from the filesharing site. The Solution GGF has designed a technical platform with third parties that allows Content Owners to plug in and have torrents monitored on a filesharing site. The system will analyze the filesharing site to identify torrents that are related to the Content, with the aim of controlling whether, and to what extent and under what conditions, the Content is allowed to be made available on the filesharing site. The platform provided by GGF is meant to allow any number of Content Owners to be plugged in, and thereby have their Content covered by the solution. GGF will ensure that the design and architecture of the solution is scalable and can support the necessary features even when the system is expanded to handle large amounts of Content. GGF will make individual arrangements with the Content Owners who wish to make use of the solution. All costs of
10 http://hbswk.hbs.edu/item/4206.html 11 http://torrentfreak.com/harvard-develops-p2p-client-that-uses-bandwidth-as-currency/ 12 http://www.isen.com/papers/Dawnstupid.html 13 http://www.which.co.uk/news/2010/05/uk-pcs-contain-pirated-software-worth-1-billion--213986 14 http://www.wired.com/images_blogs/threatlevel/2009/08/manifest.pdf 15 GGF would typically offer Content Owners a substantial penalty fee to allow infringing torrents to stay on the filesharing site while technical measures are being put in place, and commercial agreements negotiated, to continue the operation of the site as legal content service. operating the platform and running the systems will be covered by GGF, who will also allow the Content Owners to manage any PR and press issues relating to their Content. The following sections describe the individual elements of the platform for torrent identification and removal. Torrent Identification To identify torrents on the filesharing site, GGF will use third party proprietary textbased matching technology, to look for a relation with the Content that the Content Owners opted to have covered by the solution, either in the name of the torrent or among any relevant meta-information available on the filesharing site16. A text-based match shall be sufficient to request that a torrent be removed from the filesharing site. If the Content Owner wishes that a more thorough verification of the torrent data is performed before the actual removal, GGF can further attempt to download the data and identify it using a digital fingerprinting technology, or by manual review. The ability to download the torrent data is entirely dependent on the BitTorrent users that are seeding the data into the network. GGF will not be able to download and further identify torrents that are not properly seeded; however, actions can still be taken on such torrents on the basis of the text-based identification. Full Site Scanning Content Owners will be able to have a complete scan of torrents available on the filesharing site performed. This scan is carried out by GGF, and will identify torrents that are already present on the filesharing site, and are related to the Content which the Content Owner has opted to include in the scanning. The Content Owner will be provided with an overview of all the torrents which are identified during the scanning, including details about user activity levels. Based on this, the Content Owner may choose to have one or more torrents removed from the site, or simply to notify GGF so that the proper payment of any fees or penalties can be arranged. Monitoring the Site After conducting a complete scanning, Content Owners can rely on an ongoing monitoring of the filesharing site. GGF will analyze new torrents as they are posted on the filesharing site, and when a new torrent is identified as being related to any of the Content belonging to the Content Owner, GGF can either just record it and notify the relevant parties, or immediately have the torrent removed from the filesharing site, depending on the preferences of the Content Owner. As an ongoing service, the Content Owner will receive monthly reports of the torrents which have been discovered on the filesharing site, including user activity levels and a specification of what actions were taken, if any. GGF will not provide any personal information about users to Content owners. Personal data cannot be provided to third parties without user consent by law in most countries (in Sweden, PUL). Upon acquisition of a filesharing site GGF will require all user records and copies thereof to be destroyed by a certified company prior to takeover. Furthermore, GGF will require the Seller to give necessary warranties about the destruction of all user information. GGF will have a system for identifying and reporting is also posted on the acquisition date. Right holders will be able to relax its directory to the system to search the file sharing sites and receive regular reports with statistics and sales revenue. The risk that rights holders will remove any content on file sharing sites on the acquisition date estimates GGF as nil. GGF assessment after talks with entertainment industry is that majority of content will remain on fileshare sites. Entertainment industry players GGF held talks with are very well aware that removing content will entail one users seek out others sites. GGFs assessment is that the majority of rights holders will accept payment of the GGF, and will conclude agreements.
Financial information THE GROUP Amounts in kSEK 2009-01-01 2008-01-01 2007-01-01 Income statement -2009-12-31 -2008-12-31 -2007-12-31
Sales 4 131 5 320 5 929 Other sales 3 444 Extraordinary sales OneRoof 6 300
Expenses -12 711 -10 428 -13 147 Gross Profit 1 164 -5 108 -7 218
Financial items 419 -74 -152 Profits after financial items 1 583 -5 182 -7 370
Tax 195 1 084 1 382
16 The technology described here is constantly evolving with increasing complexity. GGF has chosen to describe the “lite” basic version of the technology that will be used. Net income after tax 1 388 -4 098 -5 988
Balance Sheet 2009-12-31 2008-12-31 2007-12-31
Assets
Intangible assets 18 722 25 031 25 091 Tangible assets Inventory 42 167 225 Financial assets 448 1 904 1 184 Total assets 19212 27 102 26 500 A/C receivable 400 809 1 359 Total assets 19 612 27 911 27 859
Equity and debt
Equity Paid up share capital 31 134 29 938 29 938 Issue but not registered share capital 2 000 1 196 1 196 7 160 4 963 4 963 Reserves -220 -225 328 Balanaced Profit&loss -28 526 -28 130 -24 032 Total Equity 11 548 7 742 12 393
Long term debt 1 683 8 886 7 825 Short term debt 6 381 11 283 7 641 Total equity and debt 19 612 27 911 27 859
Sharecapital Year Event Nominal value Increase in Increase in Total no. Total share no. of shares share capital of shares capital 1998 Bolagsbildning 100 kr 1 000 100 000 kr 1 000 100 000 kr 2003 Nyemission 100 kr 4 000 400 000 kr 5 000 500 000 kr 2003 Split 5 kr 95 000 - 100 000 500 000 kr 2005 Nyemission 5 kr 669 200 3 346 000 kr 769 200 3 846 000 kr 2005 Split 0,25 kr 14 714 800 - 15 384 000 3 846 000 kr 2006 Nedsättning aktiekapital 0,10 kr - 2 307 600 kr 15 384 000 1 538 400kr 2006 Riktad kvittningsemission 0,10 kr 186 279 968 18 627 996 kr 201 663 968 20 166 396 kr 2007 Riktad kvittningsemission 0,10 kr 97 720 032 9 772 003 kr 299 384 000 29 938 400 kr 2008 Riktad kvittningsemission 0,10 kr 11 960 000 1 196 000 kr 311 344 000 31 134 400 kr Efter pågående inregistrering 2009 Riktad kvittningsemission 0,10 kr 20 000 000 2 000 000 kr 331 344 000 33 134 400 kr Risk factors Medial risk GGF regards false rumors and incorrect reporting in media as a risk. File sharing is a controversial activity. In the current infected debate, news can easily be misunderstood and start a chain reaction of incorrect claims and reporting as occurred during an American company's announcement did. GGF encourages its shareholders to take a critical view of reporting in media. Misconceptions and interpretations may damage the acquisition process if shareholders and/or new investors who intend to participate in the rights issue pull out because of unsubstantiated claims. Delays As a number of partners' services are essential in an acquisition, the acquisition's success is dependent on these services being delivered properly and in time. Some parties may terminate an agreement due to spreading of rumors. Direct or indirect allegations may delay the project. GGF requests shareholders to critically assess the delays in the same manner as the shareholders normally do. Entertainment industry and owners of filesharing sites GGF is very much aware of the disagreements between the entertainment industry's participants and the owner / operators of filesharing sites. However, while in conflict, the awareness of resolving the conflicts is considered by both sides as urgent. In view of this urgency, GGF believes it has the right to take advantage of the best expertise in each field for the project to succeed. GGF sees filesharing sites' owners/operators' technical expertise and knowledge of the filesharing community as valuable and regards the owner/operators' participation in working out solutions to retain the user base as useful. If GGF considers some expertise necessary for the project, offered by, be it a, major label or the operator of a filesharing site, GGF will accept the help which may be perceived in a negative way by some party. The technical implementation and programming, however, will be performed by GGF's employees as is normally done. Lawsuits GGF is engaged in a lawsuit with the banking firm G&W Kapitalförvaltning in Sweden (“G&W”). G&W Kaptaförvaltning claims to have delivered a list of investors and their signed committments to fund the acquisition of The Pirate Bay in 2009, and that GGF has failed to pay G&W the amount of SEK 281 250 in accordance with the agreement between G&W and GGF. G&W also claims to have reported the status of the financing to Aktietorget. GGF on the other hand claims that G&W never reported the investors and their commitments to the Aktietorget stock exchange in violation with the agreement. GGF believes the outcome of the lawsuit will be in favour of GGF. The company's board and management
Janne Lunkan Lundqvist, Incoming Chairman Janne Lundqvist, the industry usually known as simply "Lunkan” will be elected to the Board of Directors at the General Shareholders Meeting to be held in October 2010. Lnkan began his professional career at the record company CBS in 1975, where he among other things was in charge of Sales. Fr.om 1983, he was Marketing and Sales Director of Virgin Music, Sweden. In 1997 he became President of Greatest Hits Entertainment, who produced the TV-advertised compilation albums under the names “Most Wanted” and “Party Zone”. Lunkan was the President of the digital distributor Vitaminic from 2000-2002 before he started his own business under the name Lunkan Music & Media. Shareholding in the Company: 1,000,000 shares. aLunkan will be appointed as Chairman at the next General Shareholders Meeting. Hans Pandeya, CEO, Director Founder of the free advertising papers in England, Australia and India. Experience in IT and real estate. Shareholding in the Company: 90,307,707 shares.
Majken Hummel-Gumaelius, Departing Director Majken Hummel Gumaelius has worked as financial manager at Det Norske Veritas and as a Financial Consultant in Sweden and overseas. Majken has a BSc in Economics from Uppsala University. Shareholding in the Company: 98 000 000 shares. Majken Hummel-Gumaelius will be leaving the Board at the next General shareholders Meeting.