About Fragbite Group AB (publ)
Fragbite Group AB (publ) is a Swedish corporate group with a portfolio of established subsidiaries that develop, adapt and publish games and esports content within GAMING, ESPORTS and WEB3. Their products are developed for both traditional platforms – PC, mobile and console – and modern web3 platforms built on blockchain technology. The Group is headquartered in Stockholm and has over 80 employees in Sweden, France, the Netherlands, Gibraltar and Egypt. Fragbite Group is listed on Nasdaq First North Growth Market.
Background and motives for the directed issue
- The purpose of the directed issue is mainly to finance the acquisition of Fall Damage and the continued operation of Fall Damage and the development of its tactical First Person Shooter (“FPS”) game ALARA Prime until launch.
- Since 2019, Fall Damage has been developing ALARA Prime, a tactical FPS game. The enduringly popular FPS gaming genre includes some of the most historically successful titles on the gaming market globally.
- Tactical FPS games, in addition to standard mechanics, have an additional depth in the game design which requires more tactical thinking, cooperation and skills. Dominant tactical FPS games such as Counter-Strike and Valorant have two competing teams, whereas what makes ALARA Prime distinctive is that it has a third team, which radically changes the game dynamic and opens up for a multi-dimensional tactical approach.
- The combination of gameplay with three teams, a deep utility arsenal of weapons and tools, as well as an innovative game design inspired by the world of sports, creates unique game situations that cannot currently be found in any other tactical FPS games on the market.
- The rationale for the acquisition of Fall Damage is that ALARA Prime has significant revenue potential for Fragbite Group, with multiple synergies created within the group’s ecosystem with the gaming, e-sport and web3 business areas.
The case
The acquisition of Fall Damage has significant revenue potential for Fragbite Group, with multiple synergies created within the group’s ecosystem with the gaming, e-sport and web3 business areas. Acquiring a studio with AAA capacity at a very competitive price, SEK 20 million, in relation to what has been invested in the development of ALARA Prime so far, is a unique opportunity in line with Fragbite Group’s strategy. As part of the acquisition, Fragbite Group will assist with the last step in the development of ALARA Prime before the 2024 planned release. Fragbite Group will release ALARA Prime by hiring a publisher, contributing with a go-to-market strategy and ensuring broad revenue streams by utilising expertise and resources within the Fragbite Group.
Directed Issue
