Atari announces the launch of a capital increase through private placement

Atari announces the launch of a capital increase through private placement

Paris, December 21, 2020 – 17h40 – ATARI (ISIN : FR0010478248 - ATA, PEA-PME eligible), one of the world's most iconic consumer brands and interactive entertainment producers, today announces the launch of a capital increase without preferential subscription rights in the form of a private placement of c. 5 million euros through the issuance of new shares, in accordance with the 23^rd and 24^th resolutions of the combined general meeting of shareholders dated September 29, 2019 and the authorization of the meeting of the Board of Directors of December 21, 2020 (the “Transaction”). The Transaction will amount to a maximum of 10% of the share capital of the Company and there will be an application for admission to trading of the new shares on the Euronext Paris market.

The placement will be mainly conducted in France and the rest of the European Union with a limited number of investors or qualified investors, in accordance with article L. 411-2 of the French Monetary and Financial Code.

The Company has already received expressions of interest to participate in the Transaction, notably from Ker Ventures LLC for a minimum amount of 0.6M€ in cash, LR Interactive Holding for a minimum amount of 1M€ in cash and Nvizzio Creations Inc. for a minimum amount of 1M€ by way of offsetting of receivables.

The funds raised will enable the Company to finance the commercial development of the Atari VCS and to strengthen the development of the games division.

In accordance with the 23rd resolution of the combined general meeting of shareholders dated September 30, 2019, the issuance price of the new shares will be at least equal to eighty percent (80%) of the weighted average share price over the twenty (20) trading days preceding its determination.

Settlement-delivery of the new shares issued in connection with the Private Placement and their admission to trading on the regulated market of Euronext Paris is expected to occur on December 28, 2020.  The new shares will carry current rights and will be admitted to trading on Euronext Paris under the same ISIN code FR0010478248 - ATA.

Louis Capital Market LLP / Midcap Partners is acting as Lead Manager and Bookrunner of the Transaction.
EuroLand Corporate is acting as financial advisor on the Transaction.

In accordance with article 211-3 of the general regulations of the Autorité des Marchés Financiers (AMF), the offer of the Company’s shares in the context of this capital increase conducted in the form of a private placement will not give rise to a prospectus subject to review by the AMF.