Digital Bros requests conversion of the outstanding convertible loan

Digital Bros S.p.A. ("Digital Bros"), holder of convertible 2016/2021:1 (the "Convertible Loan") in Starbreeze AB (publ) ("Starbreeze" or the "Company), have today requested conversion of the total outstanding loan of approximately MSEK 215, into shares of series B in Starbreeze, in accordance with the conversion undertaking as disclosed on April 28, 2023. As a result of the conversion, a total amount of 148,311,724 new shares of series B are issued in Starbreeze at a conversion price of SEK 1.45 per share.

Digital Bros has, in accordance with the conversion undertaking entered into, today requested conversion of the total outstanding loan amount under the Convertible Loan, corresponding to SEK 215,052,000, into new shares of series B in Starbreeze. The conversion price has, in accordance with the terms and conditions of the Convertible Loan, been set at SEK 1.45 after recalculation as a result of the completed rights issue where the outcome was announced on June 21, 2023.

As a result of the conversion, Starbreeze's share capital will increase with SEK 2,966,234.49, from SEK 26,569,006.42 to SEK 29,535,240.90, and the number of shares of series B will increase by 148,311,724, from 1,076,841,522 shares of series B to 1,225,153,246 shares of series B, corresponding to a dilution of approximately 10 percent of the total number of shares and approximately 4 percent of the total number of votes in Starbreeze after the conversion. Following Digital Bros and other shareholders having converted shares of series A to shares of series B in the Company during the month of July and after the completed conversion of the Convertible Loan in accordance with the above, Digital Bros will hold approximately 21.0 percent of the shares and 29.2 percent of the votes in Starbreeze.

As a result of the conversion, Digital Bros and Starbreeze's respective rights and obligations relating to the Convertible Loan are finally settled, meaning that Digital Bros has waived its right to accrued but unpaid interest related to the Convertible Loan.

For more information, please contact:

Tobias Sjögren, CEO
Tel: +46 (0)8–209 229, email: [email protected]  

Mats Juhl, CFO
Tel: +46(0)8-209 229, email: [email protected]

About Starbreeze
Starbreeze is an independent developer, publisher and distributor of PC and console targeting the global market, with studios in Stockholm, Barcelona, Paris and London. Housing the smash hit IP PAYDAY, Starbreeze develops games based on proprietary and third-party rights, both in-house and in partnership with external game developers. Starbreeze shares are listed on Nasdaq Stockholm under the tickers STAR A and STAR B with the ISIN-codes SE0007158928 (A share) and SE0005992831 (B share). For more information, please visit www.starbreeze.com.