MyFirstApp Enters Agreement to Acquire TalesTime in Line with Existing Acquisition Strategy

Stockholm, 2023-09-29

In line with the operations and strategy of MyFirstApp Sweden AB (publ) (“MyFirstApp”), we are pleased to announce that we have today entered into an agreement to acquire 100 percent of TalesTime AB (“TalesTime”). TalesTime operates an AI-based SaaS online service. TalesTime provides its users with personalized stories and allows users to generate customized stories according to their preferences, based on the latest AI technology. The platform currently has around 3000 free users and sells the service both via subscription and individual purchases.

The ambition with the acquisition, besides further developing the underlying assets, is to strengthen MyFirstApp’s portfolio of brands and offer the group's existing customer base new services and platforms that can contribute to both entertainment and education. TalesTime currently employs one staff member, and together with the current organization within MyFirstApp, we see synergies in integrating knowledge and experience into the platform.

This acquisition marks the group's first advancement into educational areas that include reading, representing an expansion beyond our previous primary focus on mathematics. This is also in line with the company's strategy to offer AI-driven educational material. In tandem with the company's work and development of the Evolear service, we add with TalesTime additional breadth to our product portfolio, which is strengthened by artificial intelligence.

 

Today's customers are primarily parents who have registered for the service. The goal is to grow TalesTime through organic growth, synergies with other platforms within the group, and through additional acquisitions in the future.

The acquisition of TalesTime is initially not expected to have any significant financial impact on MyFirstApp, either in terms of costs or revenues, as the platform has recently been launched. Nevertheless, we believe that TalesTime aligns perfectly with our strategy to develop AI-driven educational platforms and expect it to contribute to the group's continued success and growth in the long term.

Related Party Transaction
The seller of TalesTime is Iron Branch Invest AB and is 100% owned by BGF Foundation AB, which is controlled by Thomas Jansson. The buyer, MyFirstApp Sweden AB, is approximately 48% owned by NanoCap Intressenter AB, which in turn is approximately 75% owned by NanoCap Group S AB, a wholly-owned subsidiary of NanoCap Group AB, where approximately 62% of the votes are controlled by BGF Foundation AB. Additionally, Iron Branch Invest AB directly owns approximately 25% of MyFirstApp.

Due to this, the acquisition is considered a related party transaction, and the implementation of the acquisition is conditional upon the shareholders of MyFirstApp approving the acquisition decision at an extraordinary general meeting.

The purchase price amounts to 8.0 MSEK, of which approximately 1.2 MSEK with newly issued shares in MyFirstApp and 6.8 MSEK in promissory notes to the sellers running for 24 months with an annual interest rate of STIBOR + 4 percent. The price per share amounts to 5.01 SEK (calculated after the quota value), the number of new shares amounts to 239,521 shares. The sellers are Iron Branch Invest AB. MyFirstApp has the right but not the obligation to convert the promissory notes during the period on VWAP 10 trading days. The dilution after the transaction amounts to approximately 6.64 percent.

This disclosure contains information that MyFirstApp Sweden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 29-09-2023.