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Sunday, June 16, 2024

Esports Org Heroic Meets Fundraising Target to Avoid Catastrophe

European esports organization, Heroic, has announced that it has raised enough funds to keep its business operations afloat for the time being. The organization revealed in a general meeting on Monday that it was able to issue 10 million preference shares at NOK 1 ($0.095) each, raising a total of NOK 10 million ($0.95 million). The new shares were made available to select investors and existing shareholders holding 5,000 or more shares in the company.

The funds raised are not enough to address all of Heroic’s challenges, but it is sufficient to prevent an immediate catastrophe. Heroic had previously stated that it needed to raise NOK 80 million ($7.60 million) by the end of 2025 to continue operating, with a minimum of NOK 10 million required before the summer of 2023.

This is not the first time that Heroic has attempted to raise funds through a general meeting. In a previous meeting on March 20, the organization had set a target of NOK 12 million to NOK 20 million, with each share priced at NOK 2 ($0.19). However, due to insufficient interest from shareholders, Heroic was forced to lower its target to NOK 10 million and reduce the share price.

Despite these challenges, Heroic has established partnerships with two of the biggest franchise leagues in CS:GO, BLAST Premier and ESL Pro League. Its team is currently ranked third in the world. In addition, Heroic was selected, along with MOUZ, FURIA, and FaZe, as one of the four esports organizations for the ESL R1 virtual racing circuit.

Since its listing on the NOTC in Oslo in February 2021, Heroic’s stock price has significantly declined from NOK 19.76 ($1.85) to NOK 0.80 ($0.075).

In conclusion, Heroic has been able to meet its fundraising target, which is a positive development for the organization. Although the funds raised are not enough to solve all its problems, Heroic can continue to operate and work towards its goal of raising NOK 80 million by the end of 2025.

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