Remedy and Tencent Enter Into Convertible Loan Agreement

Remedy's search for fresh capital has been successful with Tencent. The Chinese publisher is providing a loan of 15 million Euro, which can be converted into an equity stake.

Remedy Entertainment is seeking to raise fresh capital via Tencent. As Remedy announced, the company has entered into a 15 million Euro convertible loan agreement with a Tencent-owned company. The loan has an annual non-cash interest rate of 8 per cent and a fixed conversion price of 27.20 Euro per share.

Before the agreement can take effect, Remedy's shareholders must still approve it at an extraordinary general meeting. Remedy has invited shareholders to attend the meeting on 24 October.

“Part of Remedy's long-term strategy has been to strengthen our position in the value chain, to have more control over how our games are commercialized, and to grow our share of the value these games can create.  As we move towards self-publishing, this financing will support us in developing and fully realizing the potential of the games we have in development and successfully carrying out the commercial activities of our next self-published games. Tencent’s investment demonstrates strong confidence in Remedy's long-term vision and strategy,” commented Remedy’s CEO, Tero Virtala.