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*) Amount of new first time registered subscribers. This includes basic subscribers (those who get free access to limited content) and paying premium subscribers.
**) Share of new subscribers who pay for either a 1-day or 30-day subscription. It shall be noted that different trial periods is offered depending on geographical market.
***) Including 1-day and 30-day subscriptions. Note that subscribers can have purchased more than one-day pass during the period. The number includes both new and recurring subscribers. Subsequent reconciliation of sales through mobile operators API's are made quarterly.

Followed by the focus on content originating from the Philippines for the Filipino Diaspora (population moved from its original homeland), the trend continues to strengthen where the users subscribe, pay and consume content through their mobile arrangement with a local telecommunication company. In the 3rd quarter 75% of consumption were from mobile phones, 10% from tablets and 15% from desktop computers. The introduction of daily subscriptions through application-programming interface ("API") with regional mobile operators such as implemented in United Arab Emirates, Bahrain and Kuwait allows the user to subscribe and unsubscribe on a daily basis using their mobile phone subscription or pre-paid phone number for payments. This has proven to be extremely successful as the Filipino Diaspora favors a low amount before a low price (day pass vs. monthly subscription) for their consumption. The flexibility of being able to turn a subscription on and off on a daily basis seems to be appreciated by the subscriber in such way that he is willing to pay a premium for such convenience compared to the price of a monthly subscription. Depending on which market a subscription is sold 6-9 one-day subscriptions equals the price of a monthly subscription.

Mavshack's next launch is planned for the Kingdom of Saudi Arabia. This was forecasted to start this September but due to unforeseen technical refinement procedures on the part of the telecommunications partner, the launch has been moved to the fourth quarter of 2016. In parallel Mavshack is in dialog with another major global telecom conglomerate holding leading positions in the markets of Qatar, Kuwait and Oman where the Filipino diaspora are present in large numbers and very active. Mavshack has also initiated discussions with operators outside the Middle East in order to explore business opportunities presented by similar telco integrations where the Filipino diaspora are present at size.

On September 24, 2015 Mavshack Board of Directors decided to contract with Abara Equities Ltd. (Abara), a company which focuses on assisting Asian investments in Europe, where Abara guarantee new issues up to 30 MSEK in one or more parts until October 1, 2016. During the contracted period 17 MSEK was utilized to execute on the company's sales strategy with special focus on Filipinos in the Middle East. With the support of the mandate given to the Board of Directors received at the Annual General Meeting May 17, 2016, the Board has decided to enter into an extension of this agreement with Abara up to July 1, 2017.

"For us it is gratifying to see how well the company has managed to implement its sales strategy in the Middle East. By integrating with major mobile operators Mavshack has a unique opportunity to capitalize on new consumer habits in the rapidly growing streaming market where the mobile phone is used to subscribe and pay for a subscription as well as to consume content, "says Charis Raftopoulos Managing Partner Abara Equities Ltd.

The agreement on the extension of Abara includes the following conditions:

• Abara guarantee new issues up to 13 MSEK in one or more parts until 1 July 2017.
• Mavshacks Board of directors may call on this warranty with 30 days notice and the issue price is set at 80% of the average share price during the 30-day assessment period before issuance.
• The remaining part of the Board's authorization to issue shares is 35 million shares

The number of shares and the share capital will increase relative to the exercise price based on the current performance period. The current number of shares is 147,106,943 and share capital is 14,710,695 SEK. With today's share price of 0.37 SEK the number of shares would increase by a maximum of 35 million to a maximum of 182,106,943 shares and the share capital by a maximum of 3.5 MSEK to a maximum of 18,210,695 SEK. This would mean a dilution of 24%.