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Jumpgate has announced a further measure to reduce its debt burden in order to optimise its refocusing on the PC and console games market. The company plans to issue new shares with preferential purchase rights for existing shareholders.

The cut-off date for participation is 16 May, which means that only those who are shareholders in Jumpate at Euroclear Sweden AB on 16 May will receive one subscription right per share. Subscription to the new shares will then take place between 22 May and 5 June. The rights can be traded on NGM Nordic SME between 22 May and 31 May. Pre-emptive rights that are not exercised will become invalid and expire.

If all rights are exercised, Jumpdate will raise SEK 28.6 million, or almost EUR 2.5 million at current exchange rates. According to the company, there is sufficient demand from shareholders. There are already guaranteed commitments for 77.3 percent of the amount, as well as subscription commitments and subscription intents for the remaining 22.3 percent.

"Through the financing, we are able to fulfil our obligations related to the Nukklear acquisition and strengthen our balance sheet significantly. With reduced financial risk, lowered capital costs and additional working capital, we are in a considerably better position to execute the Company´s growth plan. We are hoping that as many as possible of our current shareholders participate in the share issue and look forward to follow up with additional important steps forward in the coming months", said Harald Riegler CEO of Jumpgate

Just a few days ago, Jumpgate announced that its Hamburg-based subsidiary Tivola would be selling its mobile games business as part of its strategic reorganisation. This deal should also contribute to improving the financial position. All in all, CEO Riefler is confident: "We see continued great potential in our strategy to build a stable base of revenue based on co-development and work-for-hire, where we add significant upside at successful launches in a number of game projects. Despite very challenging market conditions during 2023 and the beginning of 2024, we have, in addition to cost effectivization, also focused on developing the Company and positioning ourselves for a turnaround in the market. Now, we have already signed several important agreements during 2024 and we see positive tendences signalling a normalization of the gaming market. We are proud and happy over the support from current as well as incoming owners."

An Extraordinary General Meeting is planned for the end of May due to the rights issue. In addition, the balance sheet for the first quarter of 2024 will be presented on 22 May, when trading in the pre-emptive rights begins.

Jumpgate AB announces rights issue