Embracer has raised SEK 2 billion ($182 million) by issuing 80,000 new shares.
The share issue targeted Swedish and international institutional investors, the company said in its announcement, with a subscription price of SEK 25 (roughly $2.25) per share.
In a release published prior to the share issue yesterday, Embracer said that upon completion the initiative will help the company revise its net debt target to SEK 8 billion ($729 million) at the end of FY2023-24.
CEO Lars Wingefors commented: "The operational and financial performance of the business remains on track according to the management expectations driven by a strong performance of the Dead Island 2 during the first quarter of 2023. The execution of the restructuring program communicated on June 13, 2023 goes according to plan. The company hereby reiterates its full year Adjusted EBIT forecast of SEK 7-9 billion." ($638-821 million)
Embracer clarified that it preferred a share issue rather than a rights issue as the latter "in the current market would entail a risk that the company cannot provide for its capital needs while maintaining its desired optimal capital structure."
A rights issue would also expose the company to a risk of "a significant depressed share price," Embracer added, saying that a share issue was "the most suitable alternative."
Wingefors said: "The strong support from both existing and new investors in this share issue proves a firm belief in Embracer Group’s strategy to become a stronger company by unleashing the significant untapped potential in the group.
"While the restructuring program is developing according to plan, the proceeds from this share issue will further strengthen our financial position, improving both financing
Read more on gamesindustry.biz