Starbreeze: Safe play creates short-term uncertainty in the stock - Redeye

Redeye communicates some pros and cons in this initial comment to the announcement of a rights issue in Starbreeze before the launch of Payday 3. The purpose of the rights issue is to accelerate its investments into new projects after the release of Payday 3. This transaction will also solve the loan of SEK150m and convertible of approximately SEK215m to Digital Bros, Starbreeze key owner. The rights issue of SEK450m with no announced subscription price until May 23 of course creates uncertainty amongst Starbreeze shareholders on how large the discount will be on new shares. The last months very strong momentum in the stock is erased today. While this new money of course stabilizes the balance sheet further and creates bigger possibilities for investments in both self-developed games and publishing, one can argue if the timing is right.

Länk till analysen i sin helhet: https://www.redeye.se/research/899809/starbreeze-safe-play-creates-short-term-uncertainty-in-the-stock?utm_source=finwire&utm_medium=RSS