Scout shareholders to vote on 90% share dilution next month
Scout Gaming Group shareholders will vote next month on a share issue that would dilute existing holdings in the business by 90%.
Fantasy provider Scout announced that it would conduct a share issue in order to save the business in June, after it identified a SEK17m ($1.7m/£1.4m/€1.6m) commitment in its finances which it said it was previously unaware of.
The commitment will impact cash flow for third quarter of this year and have a negative effect on profit and loss in the quarter of around SEK5.5m.
As a result of the new cost, Scout leadership took drastic action to save the business, including laying off 68 employees, between its offices in Bergen in Norway and Lviv in Ukraine.
As well as the layoffs, Scout said it would issue 202.7 million new shares, diluting existing shares by 90%.
The board has now revealed more details of the share issue. Each shareholder will be offered the opportunity to buy nine more shares in the business, at SEK0.50 per share.
Scout said that the iss..