Heroic may have found a buyer
Just two months ago, Heroic asked its shareholders for an urgent capital injection in the midst of a global economic crisis that has affected the esports-sphere. Today, Heroic has entered into an agreement with Krow Bidco AS to offer NOK 2.00 per share, the equivalent of 0.19 USD per share on today's market for all outstanding shares of the company. This would amount to NOK 55.9 million ($5.2M USD), based on 27,956,318 Shares outstanding per May 14th, 2023.
42% of shareholders, including members of Heroic's board and executive management, have signed conditional share purchase agreements with the Krow Bidco for the sale of their shares in Heroic at the offered price. The company has recommended to other shareholders to also enter into the purchase agreements. Once shareholders representing 75% of the outstanding shares enter into agreements to sell with Krow Bidco AS, then the acquisition will take effect.
According to information received by HLTV.org, ULTI Agency helped broker the deal.
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.
On January 30th, Heroic noticed the investors that the company needed NOK 80 million ($7.5M USD) in order to survive until the end of 2025, and NOK 10 Million ($935,560 USD) before the Summer of 2023, in order to stay alive. Now, today, Krow Bidco AS looks to be the potential new owner of the Heroic organization for a value of 0.19 USD per share.
The Heroic CS:GO roster is currently in Paris, playing the last ever CS:GO Major of the Valve title, but it seems that with this negotiation, the future of the roster is safe under the organization.
