Nordisk Games invests 2 million EUR into Nitro Games
Nitro Games’ Board of Directors has resolved, subject to approval on the Extraordinary General Meeting, to take a convertible loan of 2 million EUR from Nordisk Games A/S
The Board of Directors of Nitro Games Oyj (publ) (“Nitro Games” or the “Company”) has resolved, subject to approval by shareholders at the Extraordinary General Meeting (the “EGM”), to enter into a convertible loan agreement of 2 million EUR with Nordisk Games A/S (”Nordisk Games”). The funds will primarily be used for the further development of the Company’s game portfolio of shooter games.
The Company intends to publish a notice convening the EGM on Wednesday, 31 August 2022, which is expected to be held on 22 September 2022.
The convertible loan has a 24-month maturity and 0 percent annual interest rate. Nordisk Games has the option to use the convertible loan to subscribe for shares against the unpaid principal of the loan, until the entire loan has been repaid. The subscription price is 1.80 EUR per share, corresponding to approx. 19.12 SEK per share with a currency conversion rate of 1 SEK = 0.0939 EUR, and is based on the volume weighted average trading price of the last 30 days. If Nordisk Games would subscribe the full amount, the total number of shares would increase from 12,902,352 to 14,015,938, and result in a dilution of approximately 7.95 percent.
The purpose of the convertible loan is to in a cost-effective and timely manner raise capital to improve the Company’s financial position and to enable the further development and growth of the Company’s business. The Board of Directors is of the opinion that the convertible loan will be of benefit to the Company and, therefore, to all its shareholders.
Smartius Oy has acted as legal adviser to the Company in the transaction.
“We’re excited about the upcoming launch phase of NERF: Superblast. Lately, we’ve also seen several new opportunities to strengthen our game portfolio emerge from our business development. This funding allows us to take a more proactive role in exploring these opportunities as well as increases our flexibility in marketing in conjunction with the upcoming launch“, says Jussi Tähtinen, CEO and Co-Founder of Nitro Games Oyj.
