Heroic raise enough money to stay afloat — for now

European esports organization Heroic has announced that it met its fundraising target in Monday’s extraordinary general meeting.

According to the minutes from the general meeting, Heroic issued 10 million preference shares at NOK 1 ($0.095) to raise NOK 10 million ($0.95 million) and was able to find shareholders willing to purchase the new stock. The news was earlier reported by Dust2.us.

The funds raised are not enough to solve all Heroic’s problems but are enough to avoid a catastrophe. The esports organization had 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.

Heroic first attempted to raise between NOK 12 million ($1.14 million) and NOK 20 million ($1.9 million) at 2 NOK ($0.19) per share in a March 20 general meeting. But given “insufficient interest” from shareholders in the subscription offer, the organization was forced to lower its target to NOK 10 million and cut the price of the new shares.

Preference shares are shares of a company’s stock that have priority rights to dividends and/or proceeds in case of liquidation. According to Heroic, the new shares were offered to “select investors and existing shareholders holding 5,000 or more shares” in the company.

Heroic are partnered with the two biggest franchise leagues in CS:GO, BLAST Premier and ESL Pro League, with their team currently ranked third in the world. In January, Heroic were announced as one of the four esports organizations, selected for the ESL R1 virtual racing circuit, alongside MOUZ, FURIA and FaZe.

Heroic have been listed on the NOTC in Oslo since February 2021. Since then, the company’s stock price has plunged from NOK 19.76 ($1.85) to just NOK 0.80 ($0.075).