Embracer raises $182 million through share issue weeks after announcing layoffs
Embracer has raised SEK 2 billion ($182.7 million) through a directed share issue to lower its net debt target and strengthen its overall financial position.
The news comes less than a month after the Swedish conglomerate, which owns studios including Crystal Dynamics, Deep Silver, and THQ Nordic, announced it would be making an unknown number of layoffs and shuttering studios to become a "more focused, self-sufficient company" after spending the past few years investing heavily in mergers and acquisitions.
Embracer said the share issue, which consisted of a total of 80,000,000 B shares, will allow it to focus on the "key aspects" of its restructuring program while also allowing it to revise its net debt target to SEK 8 billion from SEK 10 billion.
Lars Wingefors, CEO of Embracer, said the "strong support" from both existing and new investors during the share issue shows a "firm belief" in the company's current strategy.
"While the restructuring program is developing according to plan, the proceeds from this share issue will further strengthen our financial position, improving both financing cost and our operational flexibility, and enabling us to focus on the key aspects of the program," added Wingefors in a note to investors.
"Ultimately, this will empower our entrepreneurs and creators to continue to deliver outstanding and memorable experiences to gamers and fans across the globe."
Notably, Embracer claims the share issue will provide an additional "buffer" in addition to those impending layoffs and studio closures, further "improving financing costs and operational flexibility" as it seeks to become a "highly cash-flow generative business."
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