Heroic to meet with investors amid financial difficulties

Despite the excellent performance of their CS:GO team, it seems that Heroic is in desperate need of money, and has called a general meeting with investors in an attempt to raise funds.

Heroic calls a general meeting with investors

That's according to Pley, who reports that the situation is dire and that the organisation has invited investors to an extraordinary general meeting in a bid to raise funds.

In a notice issued to shareholders, Heroic stated that their former chairman Joachim Haraldsen had commented recently that the company would need a significant cash injection in order to be able to sustain itself until the end of 2025.

"In this regard, reference is made to the extraordinary general meeting of the Company, on 30 January 2023, where the Company's former CEO Joachim Haraldsen, addressed the Company's need for additional capital, and that the Company will need NOK 80 million to sustain its business until the end of 2025, of which, a minimum of NOK 10 million will be needed before summer 2023."

Haraldsen later amended this statement, which incorrectly referred to him as the former CEO.

That NOK 80 million (around $7.5 million) is not the company's only concern, however. The same document states that Heroic will need to raise at least NOK 10 million (around $930,020) by the end of Summer this year.

Heroic has yet to publish its 2022 annual report, but it failed to make a profit in 2021. In fact, the company reported a loss of NOK 25 million (roughly $2.34 million).

It is currently not clear what will happen to Heroic's esports efforts if it is unable to raise enough money. The organisation, which was acquired by Omaken Esports in 2021, currently boasts teams in CS:GO, Rainbow Six, and RENNSPORT. Until recently, Heroic also had a PUBG team but withdrew from the scene last month. In fact, that decision was likely driven by Heroic's financial difficulties, with the company releasing the following statement at the time:

“After careful consideration and due to the restructuring in the ecosystem, we have determined that continuing to compete in PUBG is no longer sustainable for the organization."

Should Heroic's financial difficulties continue, it seems likely that they will further shrink their esports ambitions. Given the ongoing success of their CS:GO team, they could be safe for the time being, but it is hardly a promising sign for their future.

The ongoing turmoil at their parent company is hardly slowing down the Heroic CS:GO team, however - who are currently competing in ESL Pro League Season 17. After a sterling performance in the Group Stage, Heroic are one of the favourites to make it through to the Grand Final, due to take place on March 26. You can follow along with their efforts via our upcoming CS:GO esports match schedule. And before you tune in, make sure you've signed up to claim your free 100% bonus, in order to make the most out of your Counter-Strike betting experience.