Scout Gaming Group completes SEK75m share issue

Scout Gaming Group has generated proceeds of more than SEK75m (£6.5m) after completing two directed share issues of over three million new shares in the company.

The two share issues encompassed a directed share issue through an accelerated ‘book building’ procedure, with 1,835,062 shares being issued and a second directed share issue through US-based institutional investment firm Topline Capital partners of a further 1,200,000 shares.

Total proceeds included SEK45m (£3.9m) before transaction costs from the first share issue, with a further SEK30m (£2.6m) being generated through the second.

The subscription price was set at SEK25 (£2) per share, corresponding to a premium of 14.6% compared to the average volume-weighted price of the company’s share price on the Nasdaq First North Growth Market over the past 30 trading days.

Scout Gaming has said the share issue was “substantially oversubscribed” by institutional investors with the company targeting the further strengthening of its financial position through accelerated growth and continued product development.

Share issue subscribers include German institutional investor Lloyds AG, Provobis and Knutsson Holdings.

Scout Gaming CEO Andreas Ternström said the firm was pleased to attract both new and existing institutional investors to its growing investor base.

“Scout Gaming is in an intensive growth phase establishing the DFS vertical globally. We are at the same time launching many new products and markets, just recently esports had a warm welcome,” said Ternström

“I’m sure that we, through this placing, can capture additional market possibilities to accelerate the growth even more rapidly,” Ternström added.

Following the completion of the directed share issues, the company’s total shares will amount to 20,536,654 shares, with an increase in its share capital to SEK1,080m (£95m), more than double its current share capital base.