Heroic call another general meeting after failing to raise money from shareholders

Michal Konkol/BLAST

European esports organization Heroic will hold another extraordinary general meeting on March 27 after failing in its attempt to raise the necessary money to remain operational in March 20’s meeting.

In an update to shareholders, Heroic said that there was “insufficient interest of subscribers” in the private placement during the March 20 extraordinary general meeting and that new conditions have been proposed in an effort to entice shareholders of the company.

After initially attempting to raise between NOK 12 million ($1.14 million) and NOK 20 million ($1.9 million) at 2 NOK ($0.19) per share, Heroic are now looking to raise between NOK 8 million ($0.76 million) and NOK 15 million ($1.43 million), with the subscription price set at “NOK 1 ($0.095) per share or higher at the discretion of the general meeting.”

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According to the minutes of a January 30 extraordinary general meeting, Heroic CEO Joachim Haraldsen alerted investors that the company needed to raise NOK 80 million ($7.60 million) to continue operations until the end of 2025, with a minimum of NOK 10 million ($0.95 million) required before the summer of this year.

Heroic was acquired in February 2021 by Omaken Sports, a Norwegian organization founded by Youtube star Joachim Haraldsen. A week earlier, Omaken had raised NOK150 million ($17.7 million) as the company aimed to become “a Nordic powerhouse within global esports.”

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Heroic currently field esports teams in CS:GO, Rainbow Six and RENNSPORT after withdrawing from PUBG esports only last month. “After careful consideration and due to the restructuring in the ecosystem, we have determined that continuing to compete in PUBG is no longer sustainable for the organization,” Heroic stated on February 2.

Heroic is currently a partner in CS:GO’s BLAST Premier and ESL Pro League, and in RENNSPORT’s ESL R1. In February 2022, Heroic raised 60 million NOK ($5.7 million) by issuing 3,000,000 new shares, with a portion of the money used to make a partial payment of the ESL Pro League franchise spot.

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Omaken Sports AS was registered on the NOTC-list in February 2021. (Later that year, the company was renamed to Heroic Group). Since then, the company has seen its stock price fall from NOK 19.76 ($1.85) to just NOK 0.80 ($0.075).

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