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BRIEF-Funcom raises NOK 52.8 mln in private placement, restructures debt
May 26, 2016 / 12:47 PM / 2 years ago

BRIEF-Funcom raises NOK 52.8 mln in private placement, restructures debt

May 26 (Reuters) - Funcom NV :

* Completes private placement raising about 52.8 million Norwegian crowns (about $6.34 million) in gross proceeds

* Issues 95,970,000 new shares at subscription price 0.55 crown per new share

* In order to reduce dilutive effects of private placement, intends to launch subsequent offering of about 15 million new shares

* Subscription price per offer share will correspond to subscription price in private placement, being 0.55 crowns per share

* Says private placement ensures the company has sufficient funds for operations for at least coming 12 month period

* Will use private placement proceeds for development of game Conan Exiles and two other titles to be developed this year, for repayment of $500,000 thousand short term loan drawn in April 2016 and other general corporate purposes

* Has entered into agreement with KGJ Investments S.A., SICAV-SIF (KGJI) for restructuring of company’s $7.95 million restated and amended convertible loan agreement dated 13 April 2014 and convertible bond loan from 21 December 2011

* Under agreed debt restructuring KGJI will convert $7.7 million of principal amount owed by company under convertible loan into 42,777,778 new Funcom shares

* Debt conversion is made at a conversion price of $0.18 per share

* KGJI agreed to vote in favour of proposal to change convertible bond to reduce interest rate on convertible bond from 5 pct to 3.5 pct p.a. and to keep interest accruing until maturity date Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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