Fragbite CEO Marcus Teilman has resigned to “pursue new challenges” someday after the writer declared Alara Prime developer Fall Damage bankrupt.
The Swedish online game and esports firm has named chairman Stefan Tengvall as interim CEO. Tengvall will step down as chairman of the board consequently however will stay a board member. Board member Sten Wranne will exchange him as chairman.
“The board and I thank Marcus for his efforts and his dedication to Fragbite Group throughout his time as CEO and need him the perfect of luck sooner or later. The corporate has initiated a value discount programme with the goal of securing a wholesome money move in each the quick and long run,” said Tengvall in a press release.
“Additional analyzing the prices of the group and our portfolio corporations in addition to figuring out alternatives for restructuring, thereby enabling elevated capital for our worthwhile underlying core holdings, can be my principal focus within the coming interval. I stay up for the duty as it’s one thing I’ve carried out beforehand in my profession. We now have a incredible group that may turn out to be even higher.”
Fragbite acquired Fall Damage in October 2023 for $1.8 million however has declared the studio—shaped by DICE alums in 2017—bankrupt after simply eight months. The corporate mentioned Fall Harm and its free-to-play shooter Alara Prime had turn out to be “unsustainable.”
Fragbite sanctions rights situation to repay money owed
After a turbulent 24 hours, Fragbite is now pursuing a rights issue value roughly SEK 72.1 million ($6.8 million) and has organized bridge financing of SEK 20 million ($1.9 million) to handle its “short-term liquidity wants.”
“The proceeds from the upcoming rights Situation are meant to finance the reimbursement of the corporate’s utilized credit score services and strengthen the stability sheet to leverage the alternatives surrounding the corporate’s remaining portfolio,” it defined.
Fragbite is adamant it boasts a “essentially secure, worthwhile core enterprise with a really robust pipeline of deliberate recreation releases and initiatives in 2024 and 2025.” That enterprise consists of web3 and esports actions, which the corporate claims go away it uniquely positioned to “leverage market developments and adjustments in client habits amongst younger gamers.”
Fragbite additionally feels current investments in its publishing subsidiary, Playdigious, will enable it to double the variety of cellular titles it operates throughout 2024 whereas signing bigger initiatives.
