COPENHAGEN, March 11th, 2019: 5th Planet Games A/S (OMX: FIVEPG) has signed a Letter of Intent with Formue Nord, securing 5th Planet Games a strategic pool of financing needed for executing on the new strategy of strategic acquisitions, as previously communicated in last week?s announcement 02-2019.
The new option provided by Formue Nord provides 5th Planet Games with the option to draw up to 42 million NOK to execute this new strategy. The amount is distributed into 12 equal tranches of which the first 4 tranches are mandatory. The 12 tranches can be drawn over the course of the coming 48 months and each tranche will be constructed as interest free convertible bonds.
5th Planet Games CEO Henrik Nielsen is extremely pleased with the agreement because it gives the company room to maneuver.
?I am very satisfied that we have been able to secure this amount of financing on such favorable terms,? says Henrik Nielsen. ?It allows us to draw the capital we need, when we need it – and at a relatively low cost. This gives us the option of executing on the new strategy by bringing new valuable gaming studios into the 5th Planet Games family ? and thereby taking the combined company to the next level without diluting the existing shareholder value noticeably.?
5th Planet Games will soon be inviting its shareholders to an extraordinary general meeting to be held at the beginning of April. At this meeting, the details of the agreement will be outlined.
?I view this agreement as a guarantee to the 5th Planet Games shareholders. It is not our intention to draw more money out of this agreement than we absolutely need, but now we have the full capital available for realizing our strategy. We have had a very good dialogue with Formue Nord, and we see them as a great long-term financial partner. They have multiple ways of supporting us and have shown a great willingness to tailor-make an arrangement that fits 5th Planet Games and our new strategy,? says Henrik Nielsen.
?We have followed 5th Planet Games for a long time and have supported the company previously as underwriters in rights issues and by exercising subscription rights. We think the company has a great potential for growth, and we find the new strategy very promising, which is essential to us when we enter into a long-term financial partnership. We are very much looking forward to joining 5th Planet Games on their journey and helping them achieve their goals,? says Rasmus Viggers, CIO at Formue Nord A/S.
About Formue Nord: Formue Nord is an independent specialized asset manager. They have a wide range of different solutions whereby they provide capital to listed small- and mid-cap companies on flexible terms that accommodate each company?s requirements.
About 5th Planet Games: 5th Planet Games (OMX: FIVEPG) is a mobile games developer and publisher located in Copenhagen, Rocklin, Berlin and Nottingham.
We cooperate with premium sports brands as FC Barcelona, Liverpool FC, Paris St. Germain and Cristiano Ronaldo. We are proud to expand the world of the TV series Vikings and thrilled to produce sequels to the legendary games Doodle Jump and Dawn of the Dragons. For more information see www.5thplanetgames.com or contact CEO Henrik Nielsen +45 27 200 200