Credit: BLAST Premier and Stephanie Lindgren

Heroic in acute need of cash injection

The company has called for an extraordinary general meeting later today. The Organization needs money before the summer to continue its operations.

While Heroic’s CS:GO team has been performing on a very high level in the past six months, the financial aspect of the organization has been struggling. The situation is so dire, that Heroic today at 16.00 (CET) has invited investors for an extraordinary general meeting to try and raise new money.  

In the notice to the shareholders, a statement from the 30th of January is referenced:

- "In this regard, reference is made to the extraordinary general meeting of the Company, on 30 January 2023, where the Company's former CEO, Joachim Haraldsen, made account for the Company's need for additional capital, and that the Company will need NOK 80 million to sustain its business until the end of 2025, of which, a minimum of NOK 10 million will be needed before summer 2023".

NOK 80 million is equavilant to $7.5M. Also worth noting is the description of Joachim Haraldsen as the former CEO. After contacting Haraldsen, he clarified the statement, which should have read chairman instead of CEO.

Joachim Haraldsen is the founder of Omaken Esports, which acquired Heroic in February 2021. The company recently withdrew its PUBG team citing that “continuing to compete in PUBG is no longer sustainable for the organization”.

Heroic has not yet revealed its annual report from 2022 but in 2021 the loss was estimated at NOK 25 million equivalent to $2.34 million for the two companies Heroic AS and Heroic Group AS. The combined cash balance for the two companies was "just shy of NOK 37.5 million" at the end of 2021. Since the launch on the NOTC-list in February 2021, Heroic has increased the number of shares from 10.125.000 to 17.956.318. A number that could increase even more with today's meeting. The stock price has dwindled down from NOK 19.76 per share to NOK 0.8 at the same time.

The extraordinary general meeting will be held today at 16.00 (CET).

Note: We have reached out to Heroic to allow them to comment on this article since Saturday, but they have not returned in time for this publication.

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