Next Games is contemplating a rights offering of approximately EUR 8 million to continue strategy execution
4 September 2019
Next Games Corporation Insider information 4 September 2019 at 7.35 p.m. EEST
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Next Games Corporation (“Next Games”) is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The company’s Board of Directors is contemplating a rights offering of approximately EUR 8 million (“Offering”).
The proceeds from the Offering would strengthen the balance sheet of the company and according to the company’s strategy, enable future investments such as product development and marketing of new products as well as be used for other general corporate purposes. The current shareholders of the company have a pre-emptive right to subscribe for new shares issued in the Offering in proportion to their existing shareholdings in the Company. The Offering would also allow the company to broaden its shareholder base and increase the liquidity of the company’s share.
Next Games has received subscription undertakings from current shareholders in total of EUR 8 million. Current shareholders Jari Ovaskainen and AMC Networks Ventures LLC have committed to undertakings to subscribe, subject to certain conditions, for shares in the Offering up to a maximum amount of EUR 4 million each, EUR 8 million in total, in the event that any shares remain unsubscribed for after the expiry of the subscription period of the Offering.
Execution of the contemplated Offering requires that the Company's Extraordinary General Meeting ("EGM") authorizes the Board of Directors to decide on the issuance of new ordinary shares. The EGM will be held on 25 September 2019, and the Offering, upon approval, would take place soon after the EGM. A detailed timeline for the Offering will be announced at a later date.
CEO Teemu Huuhtanen: ”Next Games has successfully renewed its operations during this year by stabilising its business operations and rebuilding the product development pipeline. The third and final phase of the turnaround project is to secure additional funding. The contemplated rights offering would be an important step in executing our strategy and enable investments in the future. I am very pleased about our current shareholders’ commitment to developing the company and happy that we have received a total of EUR 8 million subscription undertakings from Jari Ovaskainen and AMC Networks Ventures LLC.”
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Next Games is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead games redefines the way franchise entertainment transforms into highly engaging service-based mobile games. In summer 2018, Next Games launched The Walking Dead: Our World, which utilizes cutting edge AR technology and is powered by Google Maps. Currently Next Games is working on multiple new games based on popular entertainment franchises including, Blade Runner Nexus, for the popular Blade Runner franchise and a mobile game based on Netflix’s Stranger Things.