Today the Board of Directors has decided to carry out an issue of shares with preferential rights for existing shareholders in Gaming Corps, a so-called share issue. The purpose of the share issue is to raise capital in order to strengthen current and upcoming investments in Gaming Corps, supporting our strategy for growth. The share issue is made available only within the boundaries of Swedish jurisdiction.
Since the overhaul of the company in 2019, Gaming Corps has had a sharp development curve and implemented many changes, structural as well as business-related. The Company’s business idea is based on combining Gaming and iGaming, and in both business areas we work on establishing a profitable business for the long-term, utilizing synergy effects between the two. iGaming is the business area deemed to require the least development time before reaching profitability, which is why resources and focus have been, and currently are, primarily dedicated there. A solid foundation has been established in terms of capacity, organization, license, distribution, partnership agreements and product pipeline.
Gaming Corps now faces a need to strengthen production capacity within iGaming to further build upon, and broaden, present initiatives. It is the Company’s goal to establish Gaming Corps as a driven, innovative brand on the market through qualitative products that are developed based on solid insight into end user preferences as well as applicable laws and regulations. At present, there is a need to increase funding with the aim of supporting and strengthening the business to the point where a sufficient number of well-received products are made available to the market via a sufficient number of operators. The number of operators that can provide Gaming Corps’ products is steadily increasing and has already reached levels that allow this, while the number of launched games has not as of yet. In addition, the technical platform for backend programming that Gaming Corps has utilized via license has functioned satisfactorily since implementation, which is why the Company aspires to acquire it to enable long-term cost efficiency. Based on positive feedback regarding Gaming Corps’ strategy and pipeline from current and potential partners, the Company also intends to establish a presence in more geographical areas sooner than previously planned, something that requires more licenses. In addition, the Company has identified a need for increasing funds for Group-wide functions in order to relieve the management team from more operational tasks and thus enabling faster progress. Finally, the Company has identified a need for providing some additional funds for business development within Gaming.
The terms of the Rights Issue mean that shareholders in Gaming Corps receive one (1) subscription right for every one (1) share held. Four (4) subscription rights are required to subscribe for one (1) new share at a subscription price of SEK 3.00 per new share. Subscription rights which are not exercised during the subscription period become invalid. If all rights are exercised and the share issue is fully pledged, approximately 26.1 MSEK in capital would be raised (before administrative costs).
A detailed Memorandum for the share issue will be published on November 2nd. Please note that the Memorandum will be published in Swedish as the share issue is made available only within the boundaries of Swedish jurisdiction. The announcement of this share issue will not be published, released or distributed, directly or indirectly, in or for, Australia, Hong Kong, Japan, Canada, Switzerland, Singapore, South Africa, New Zealand or any other jurisdiction where the announcement, publication or distribution of the release would be illegal, or requires registration or any other legal action.
For questions in Swedish and English, please contact ir@gamingcorps.com.
