EG7 successfully completes a directed issue of 8,747,131 new shares raising proceeds of approximately SEK 429 million



Stockholm, 24 September 2020

INSIDE INFORMATION: The Board of Directors of Enad Global 7 AB (publ) (“EG7” or the “Company”) has, in accordance with what was communicated yesterday, based on the authorization granted by the annual general meeting on 7 May 2020 and with deviation from the shareholders’ preferential right, resolved to issue 8,747,131 shares (the “Directed Share Issue”). The subscription price in the Directed Share Issue is SEK 49.0 per share and has been determined through an “accelerated book-building” procedure led by Carnegie Investment Bank AB (publ) and Nordea Bank Abp, filial i Sverige. Through the Directed Share Issue, EG7 will receive proceeds amounting to approximately SEK 429 million, before deduction of costs related to the Directed Share Issue. Several new Swedish and international institutional investors, including TIN fonder and Creades, as well as certain existing shareholders subscribed in the Directed Share Issue.

The Directed Share Issue will strengthen the Company’s financial position and thereby enable the Company to act on acquisition opportunities for further consolidation in the gaming market.

The reasons for the deviation from the shareholders’ preferential right are mainly to further diversify the shareholder base among institutional investors and at the same time raise capital in a time and cost-efficient manner.

The subscription price of SEK 49.0 corresponds to a discount of 15.8 percent to yesterday’s closing price of SEK 58.2 and is in line with the closing price of 22 September 2020 of SEK 48.9, and corresponds to a discount of approximately 1.6 percent compared to the 10 day VWAP of SEK 49.8. The Board of Directors’ assessment is that the subscription price in the Directed Share Issue is in accordance with market conditions since it has been determined through an accelerated book-building procedure.

The Directed Share Issue will result in a dilution for existing shareholders of approximately 19.7 percent of the number of shares and votes in the Company after completion of the transaction, through an increase in the number of outstanding shares and votes of 8,747,131 from 35,655,526 to 44,402,657. The share capital will increase by SEK 349,885 from SEK 1,426,221 to SEK 1,776,106.

In connection with the Directed Share Issue, the Company has agreed, with certain exceptions, not to issue additional shares for a period of 90 calendar days after the settlement date. In addition, Robin Flodin (Group CEO and Co-founder) and Alexander Albedj (Chairman of the Board), have committed, with customary exceptions, not to sell any shares in EG7 for a period of 180 calendar days after the settlement date.


Carnegie Investment Bank AB (publ) acts has been appointed Global Coordinator and Joint Bookrunner in connection with the Directed Share Issue and Nordea Bank Abp, filial i Sverige, has been appointed Joint Bookrunner. Baker & McKenzie Advokatbyrå KB acts as legal counsel to the Company, and Gernandt & Danielsson Advokatbyrå KB acts as legal counsel to the Joint Bookrunners.


This information is such information Enad Global 7 AB (publ) is obliged to make public in accordance with the (EU) Market Abuse Regulation 596/2014. The information in this press release has been made public through the agency of the responsible person set out below for publication at the time stated by Enad Global 7 AB (publ)’s news distributor Cision at the publication of this press release. The responsible person below may be contacted for further information.


Robin Flodin, Group CEO and Co-Founder

Phone: +46 70 477 06 34


EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 100+ game developers and develops its own original IP:s, as well as act as consultants to other publishers around the world through its game development divisions Toadman Studios and Antimatter Games. In addition, the group's marketing department Petrol has contributed to the release of 1,500+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution department Sold Out holds expertise in both physical and digital publishing and has previously worked with Team 17, Rebellion and Frontier Developments. EG7 is headquartered in Stockholm with 200 employees in 8 offices worldwide.

Nasdaq First North Growth Market Ticker Symbol: EG7

Certified Adviser: Eminova Fondkommission AB, Phone: +46 8 684 211 00


The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in EG7 in any jurisdiction, neither from EG7 nor from someone else.

This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Company. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. Carnegie Investment Bank AB (publ) and Nordea Bank Abp, filial i Sverige is acting for EG7 in connection with the Directed Share Issue and no one else and will not be responsible to anyone other than EG7 for providing the protections afforded to its clients nor for giving advice in relation to the Directed Share Issue or any other matter referred to herein.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. EG7 has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed Share Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into Unites States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, South Korea, Switzerland or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Forward-looking statements

This press release contains forward-looking statements that reflect the Company's intentions, beliefs, or current expectations about and targets for the Company's and the group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market rule book for issuers.

Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in EG7 have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in EG7 may decline and investors could lose all or part of their investment; the shares in EG7 offer no guaranteed income and no capital protection; and an investment in the shares in EG7 is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Directed Share Issue.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in EG7.

Each distributor is responsible for undertaking its own target market assessment in respect of the shares in EG7 and determining appropriate distribution channels.