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Fragbite Group AB (publ) (“Fragbite Group” or “the Company”) is a fast-growing group that provides and develops games and operates an e-sports platform. The Company pursues a global expansive growth strategy, primarily based on acquisitions, primarily in mobile gaming and e-sports. The Company's board of directors has decided to distribute ownership of the Company's shares through the issue of a maximum of 3,750,000 new shares corresponding to approximately SEK 15.0 million (the "Offering"). The Offering has received great interest among professional investors in Sweden as well as the general public in Sweden, Denmark and Finland. The Offering generated a total demand exceeding SEK 118 million, which corresponds to approximately 788 percent of the Offering. As a result of the high demand, the Company's board of directors has decided on an extension option (the “Extension Option”) consisting of an additional 1,250,000 newly issued shares and that the possibility of over-allotment (the “Over-allotment Option”), consisting of an additional 750,000 newly issued shares, corresponding to SEK 3.0 million, will be used. As a result of the Offering (including the Extension Option and the Over-allotment Option), the Company will gain approximately 600 new shareholders. Trading on the Nasdaq First North Growth Market is expected to begin on Monday, July 12, 2021.
The Offering in short:
- The price in the Offering was, as previously communicated, SEK 4.00 per share (the “Offering Price”), which corresponds to a market value of the Company's shares of a total of approximately SEK 329 million after the completion of the Offering (including the Extension Option and the Over-allotment Option).
- The Offering (including the Extension Option and the Over-allotment Option) consisted of a total of 5,750,000 shares.
- As a result of the Offering being fully subscribed, the Company's board of directors has decided that the Extension Option will be exercised in full and that the Over-allotment Option will be allotted in full. Fragbite Group may thus receive a maximum of SEK 23 million in gross proceeds, i.e. before deductions for transaction costs that are estimated to amount to approximately SEK 2.7 million. Excluding the Over-allotment Option, SEK 20.0 million is brought to the Company before deductions for transaction costs.
- The number of shares in the Company will increase by 5,000,000 shares from 76,610,303 shares to 81,610,303 shares, corresponding to approximately 6.1 percent of the total number of outstanding shares and votes in the Company after the completion of the Offering (including the Extension Option). Given that the Over-allotment Option is fully exercised, the number of shares will increase by an additional 750,000 shares, corresponding to 0.9 percent of the total number of outstanding shares and votes in the Company after the completion of the Offering (including the Extension Option and the Over-allotment Option).
- The new shareholders include Swedish and Nordic investors.
- The estimated settlement date is July 9, 2021. Trading in Fragbite Group's share on the Nasdaq First North Growth Market is expected to begin on Monday, July 12, 2021. The company's share will be traded under the short name “FRAG” with ISIN code SE0015949334.
- 24 of the Company's shareholders, including board members and management, have, through an agreement with Skills Corporate Finance Nordic AB, committed to a so-called lock up for shares not sold within the Offering for a period of up to a maximum of 450 days from the first day of trading on the Nasdaq First North Growth Market. The commitments comprise a total of approximately 40.2 percent of the shares and votes in the Company after the Offering (including the Extension Option).
Stefan Tengvall, President and CEO of Fragbite Group
“It is amazing to see the great interest in investing in the growth of our company and we are very grateful for the trust from both institutional investors and the general public. At the same time, I get mixed feelings because many who wanted to participate did not get any shares this time.”
Niclas Bergkvist, styrelseordförande på Fragbite Group
”It is fantastic to see the great interest to join us on the journey to build Fragbite Group. I want to welcome all new shareholders to FRAG!”
Fragbite Group will engage a stabilizing agent that may carry out transactions in connection with the Offering in order to maintain the market price of the shares at a level above what could otherwise prevail in the open market. Such stabilization measures may be conducted on the Nasdaq First North Growth Market, the OTC Market or otherwise, at any time during the period beginning on the first day of trading on Nasdaq First North Growth Market and ending no later than 30 calendar days thereafter. However, the stabilizing agent has no obligation to take any stabilization measures and there is no guarantee that stabilization measures will be taken. Under no circumstances will transactions be carried out at a higher price than that stated in the Offering.
The stabilizing agent may use the Overallotment option to over-allot shares to enable stabilization measures. The stabilization measures, if implemented, may be suspended at any time without notice but must be suspended within the above-mentioned 30-day period. The stabilizing agent must publish by the end of the seventh trading day, after stabilization transactions have taken place, in accordance with Article 5 (4) of the Market Abuse Regulation (EU) 596/2014 (MAR) and Commission Delegated Regulation (EU) 2016/1052, that stabilization measures have been taken. Within one week after the end of the stabilization period, the stabilizing agent will publish whether or not stabilization measures were taken, the date on which the stabilization was initiated, the date on which the stabilization was last carried out and the price range within which stabilization was carried out for each date on which stabilization measures were implemented.
Skills Corporate Finance Nordic AB is the financial advisor to the Company in connection with the Offering. The law firm Lindahl in Malmö AB is a legal advisor to Fragbite Group in connection with the Offering. Avanza Bank AB acts as an issuer regarding the Offering. Redeye AB has been appointed the Company's Certified Adviser on Nasdaq First North Growth Market. Nordnet Bank AB has been acting as a Selling Agent towards retail investors.