Norwegian-owned organization Heroic held earlier this month several extraordinary meetings where they indicated that they needed around $1M USD before the summer of 2023 in order to keep operations going.
According to official documents filed at the end of 2021, Heroic AS and Heroic Group AS experienced a $2.3M USD loss in the past year, while the combined funds of the two companies were at $3,5000,000.
This month Heroic looked into options to increase their finances and began a fundraising campaign through stock shares. They initially aimed at NOK 80 million ($7.5M USD) fund injection for the company to sustain its business until the end of 2025. During a call action on March 13, the company attempted to raise between $1.14 million and $1.9 million USD. A week later they adjusted their fundraising plan down to between NOK 8 million ($759,944) to NOK 15 Million ($1.4 Million) with the share price set to NOK 1 ($0.095 USD) or higher.
Despite their CS:GO team performing exceptionally well in the past several months, on March 20, 2023, Heroic invited investors to another extraordinary general meeting to find a solution to the acute need for cash which led to another failure to raise sufficient funds.
Earlier this week, on March 27 there has been a new extraordinary meeting which seems to have eased the crisis. In a release from March 29, the group announced they are issuing 10 million shares at NOK 1 and that they found enough shareholders willing to acquire those shares in order to keep the organization safe at least for this year.
"Following this event, we are looking forward to an exciting season of esports entertainment, with great events for our organization, fans, and strategic partners. With the upcoming CS:GO Major in Paris, and the massive hype following the launch of Counter Strike 2, 2023 will be an extraordinary year for professional esports." - Heroic Group
Last month, Heroic’s CS:G0 team finished runners-up at IEM Katowice 2023 after losing 1-3 to G2 in the grand finals and are now preparing for the BLAST.tv Paris Major 2023: European RMR event set to commence on April 11.
