Heroic announces agreement to sell company

Heroic Group AS, the owner of esports organization Heroic, has announced that it has entered into a transaction agreement to sell the company.

In a statement issued on May 15 and published on NOTC stock exchange’s website, the Heroic Group said that Krow Bidco AS has offered to acquire all issued and outstanding shares in the publicly traded company for NOK 2.00 (0.19) a share in a deal that could be worth nearly 56 million NOK ($5.25 million).

Shareholders representing approximately 42 percent of the company, including members of Heroic’s board and executive management, have signed agreements to sell their shares. The deal is subject to Krow Bidco AS reaching agreements to acquire at least 75 percent of all outstanding shares in the company.

“The board of directors of Heroic unanimously recommends the shareholders of Heroic to accept the Offer,” the statement read.

According to HLTV.org, the deal was brokered by ULTI Agency, a Norwegian agency that negotiated the transfer of Gambit’s CS:GO team to Cloud9 in April 2022. Krow Bidco AS is a “Norwegian private limited liability company owned by a regulated EU investment fund.”

The news comes less than two months after Heroic painted a bleak picture of its finances. The esports organization stated that it needed to raise NOK 80 million ($7.60 million) by the end of 2025 to keep operating, with a minimum of NOK 10 million required before this summer.

At the end of March, it raised NOK 10 million ($0.95 million), but not before slashing the price of the new shares issued from 2 NOK ($0.19) to NOK 1 ($0.095) following “insufficient interest” from shareholders in the subscription offer.

“With Krow Bidco, Heroic is offered an opportunity to continue its mission that’s been sought with support of all stakeholders,” Heroic CEO Joachim Haraldsen said in a statement. “At the same time, the transaction provides value for the shareholders in a challenging financial position for the company. Following the efforts made during recent time, the offer represents an attractive opportunity for our shareholders”.

Heroic are partnered with the two biggest franchise leagues in CS:GO, BLAST Premier and ESL Pro League. Their team, currently ranked first in the world, is already through to the BLAST Paris Major’s playoffs.

Heroic have been listed on the NOTC stock exchange in Oslo since February 2021. Since then, the company’s stock price has plunged from NOK 19.76 ($1.85) to just NOK 0.50 ($0.047).