Scout Gaming drops 40% after fund-raising announcement

Finance News

Scout Gaming Group have taken the decision to call for an Extra General Meeting and make a proposal for a rights issue at the level of SEK 100 million.

The share issue will be fully guaranteed by commitments from the shareholders Knutsson Holdings AB, Novobis AB, Scobie Ward and TopLine Capital LLC.

The funds from the share issue will in part be used to repay the bridge financing amounting to SEK 40 million which the company has press released today and on May 29th of this year and in part concerning other measures which the company in separate press releases has informed about today, to create prerequisites for the company’s operations in the future. The proposal of the share issue is that it will be performed at the level of 0.50 SEK per share and will entail about 200 000 000 new shares with a dilution of around 90%.

Niklas Braathen, Chairman of the Board in Scout Gaming Group AB, comments; “We are within SGG conducting a comprehensive restructuring, including organizational measures in parallel a review of the company’s business models and strategy, and the upcoming capital raising, which is absolutely crucial for the future of the company. We feel great respect and gratitude for our major shareholders who guarantee the issue and thus show their confidence in Scout Gaming Group. It is the task of the organization to ensure this is the company’s last defensive capital raising and to show we can stand on our own two feet and live on our own merits. “