Heroic finds support after funding struggle

Dust2 reported earlier this month that Heroic was in dire financial straits after they called for an extraordinary meeting due to immediate financial need. According to the filing, Heroic stated that they needed approximately $1.0 million USD, or NOK $10 million in order to make it through the summer.

After failing to find the funding during last week’s meeting, it appears that the company has finally found its footing with shareholders coming to calm the stormy seas.

In a release this afternoon, Heroic stated that they were issuing 10 million shares at NOK 1 in order to raise the capital necessary to sustain operations.

The company has found enough shareholders willing to acquire those shares in order to keep Heroic afloat for the time being, however this does little to stem concerns regarding the organization, which still has several outstanding debts and concerning cash flow issues.

The company first attempted to raise between NOK 12 Million ($1.14 million USD) and NOK 20 Million ($1.9 million USD) at 2 NOK ($0.19 USD) per share during the call to action on March 13th. During the meeting on the 20th, Heroic adjusted their fundraising attempts down to between NOK 8 million ($759,944 USD) to NOK 15 Million ($1.4 Million USD) with the share price set to NOK 1 ($0.095 USD) or higher.

Heroic has not had the easiest time since its IPO in February 2021. With an initial share price of NOK 19.76 ($1.85 USD) the company has seen its stock tumble to just pennies as it is now NOK 0.80 ($0.075 USD).

According to notices filed in 2021, the company saw a preliminary 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 remains to be seen how Heroic will still account for future funds as this appears to just be a pure stop-gap for the immediate cash needs.