Danish Esports Organisation Heroic calls another emergency meeting because they were unable to secure funding from shareholders. Now it is questionable where Heroic will go from here. Esports organization Heroic is in deep financial trouble. Another meeting is scheduled for next week Monday, March 27, as they were unable to convince enough people to put in money in their last general conference.
Heroic share price down massively
Heroic told shareholders that people were not interested enough in raising the money needed to keep the company going. Now they will try to put new terms in place to motivate people to take part. After originally seeking to raise between $1.14 million and $1.9 million at a price of $0.19 per share, Heroic is now seeking to raise between $0.76 million and $1.43 mil And changed the price per share to $0.095 “or higher at the discretion of the shareholders’ meeting.”
Heroic embroiled in financial problems
According to minutes from a Jan. 30 the CEO of Heroic already told the investors about the financial crisis the company was in. Apparently they need $7.600.000 until 2025 and at least $0.95 million needed before this summer. The organisation was bought by Omaken Sports in 2021, Omaken is headed by Joachim Haraldsen, a YouTuber. A week earlier, Omaken raised more than $17 million as it seeks to become “a Nordic powerhouse in global esports.”
Where does the organization go from here?
They are represented only in RB6 Siege, CS:GO and RENNSPORT and recently cancled their support for PUBG last month “After careful consideration and due to the restructuring of the ecosystem, we have decided that continuing to compete in PUBG is no longer viable for the organization,”
Heroic is leaving PUBG. A big thank you to everyone who contributed to our Championships 🏆
Read more: https://t.co/jayckT7mGg pic.twitter.com/T6kw36CAAL
— HEROIC PUBG (@heroicpubg) February 2, 2023
Heroic stated on Feb. 2. With the growing financial problems, Heroic may have to cut back even further, but they may be able to turn the ship around. Only time will tell, however. A huge strain is put on the fees for their ESL Pro League and BLAST Premier partner slots. In February last year, Heroic raised $5.7 million by issuing 3 million new shares. Of course there were open payments with the ESL Pro League spot and some of the money went towards that. Franchising is a blessing and a curse in disguise and it remains to be seen if the leagues can draw in enough attention to their partners to monetize everything. After Omaken Sports AS went public on NOTC they renamed to Heroic Group and their share price went down from $1.85 to just $0.075! Dark times for sure, let’s see if they can come back from this.