Heroic asks for urgent capital injection
In a report from Pley.gg, Heroic have sent a notice to all shareholders for a meeting at 11:00AM as the company attempts to raise money to continue operations.
According to a shareholder notice on January 30th, the company alerted investors that they were in need of NOK 80 million ($7.5M USD) in order to sustain business operations until the end of 2025 and that they needed a minimum of NOK 10 Million ($938,420 USD) before summer 2023.
Omaken Esports, which acquired Heroic in February 2021 also raised approximately NOK 150 Million ($14.0M USD) at the same time frame. The company was well known in the Playerunknown Battlegrounds space, but recently departed the title stating that it was "no longer sustainable for the organization."
Heroic has not had the easiest time since their IPO in February 2021. With an initial share price of NOK 19.76 ($1.85 USD) the company has seen their stock tumble to just pennies as it is now NOK 0.80 ($0.075 USD).
As Pley reports, Heroic has not yet revealed their annual report from 2022, but in 2021 the company saw a loss of NOK 25 Million ($2.3M USD) over their accounts for Heroic AS and Heroic Group AS. The combined cash balance for the two companies was approximately NOK 37.5 Million ($3.5M USD) by year-end 2021.
It is unknown if the financial constraints will have any sort of impact on their CS:GO roster, which is currently competing in ESL Pro League Season 17.