Fantasy sports software provider Scout Gaming Group has raised approximately SEK36m (£2.9m/€3.4m/$3.8m) through two directed share issues.
Existing shareholder Tekkorp Holding was issued 1,330,362 shares through an accelerated book building procedure and directed share issue, while institutional investor Topline Capital Partners was issued approximately 1,638,750 shares.
Scout received SEK16m before transaction costs from the Tekkorp issue, as well as SEK20m before transaction costs for the Topline share issue.
The subscription price was set at SEK12 per share, with the issue directed at both Swedish and international institutional investors.
Shares will now be transferred to new and existing shareholders, with the likes of Provobis and Knutsson Holding among the existing shareholders. In addition, Baltic-facing gaming operator Enlabs subscribed through a subsidiary.
After the registration of the share issue and the directed share issue, the total number of shares in Scout amounts to 17,502,567 shares, with the two issues equating to dilution of approximately 17% of the number of shares in Scout.
“Scout Gaming is undergoing an intensive launch phase where we accelerated our growth during the second half of 2019,” Scout’s chief executive Andreas Ternström said. “We have been approached by strategic investors who are important to the company and are pleased to be able to execute this transaction.
“With the transactions, we have financial flexibility and room for strong growth over the next years.”
Robert Andersson, chief executive of Enlabs, which now holds 4.5% of the total shares in Scout, added: “We see great development opportunities for Scout's products in the fast-growing fantasy sport segment. Scout is the only B2B supplier with a global customer base and we strongly believe in a future breakthrough for both the company and the products Scout delivers to the market.
“Through participation in the issue, we also create opportunities for closer commercial cooperation between the companies, on these grounds we participate in today's issue.”
In November, Scout reported a 127.5% year-on-year increase in third quarter revenue and revealed it was able to significantly reduce its net loss for the period.
Revenue for the three months to 30 September grew to SEK8.2m, while its net loss for the quarter stood at SEK9.5m, an improvement on the SEK11.9m loss reported for the prior year.