Successful completion of Atari’s private placement to accelerate development of the Atari VCS as well as new video game partnerships

Successful completion of Atari’s private placement to accelerate development
of the Atari VCS as well as new video game partnerships

Paris, December 22, 2020 – 08h30 – ATARI (ISIN : FR0010478248 - ATA, PEA-PME eligible), one of the world's most iconic consumer brands and interactive entertainment producers, today announces the successful completion of its capital increase without preferential subscription rights in the form of a private placement, conducted through an accelerated bookbuild, primarily 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 I of the French Monetary and Financial Code.

The Company has placed 18,163,337 new shares with a nominal value of 0.01€ at a price of 0.32€ per share, including share issue premium, for a total amount of 5.81 million euros (or 6.09% of the share capital of the Company post transaction), an oversubscription relative to the initially planned amount of 5 million euros.

As announced in the press release for the launch of the private placement on December 21, 2020, LR Interactive Holding has subscribed for 1.25 million euros in cash, Ker Ventures LLC for 0.6 million euros in cash, and Nvizzio Creations Inc. for 1.042 million euros by way of offsetting of receivables.

With the funds raised, Atari will accelerate the development of the Atari VCS in order to reach its run-rate production rhythm, currently planned for the first quarter of 2021, earlier, notably by consolidating its supplies of critical components, and to facilitate the ramp up of the distribution networks in the United States and internationally. Furthermore, Atari will strengthen its video game production efforts with development partners, in particular for indie PC games, which will also be available on the Atari VCS. 

On an indicative basis, the participation of a shareholder previously holding 1% of the share capital of the Company will be reduced to 0.94%.

The transaction was implemented through a decision of the CEO dated December 21, 2020 acting under the sub-delegation of authority granted by the Board of Directors on December 21, 2020, in accordance with the 23^rd and 24^th resolutions of the combined general meeting of shareholders dated September 30, 2019, at a price representing a discount of 19.87% to the weighted average share price over the twenty  trading days preceding its determination and a discount of 18.16% relative to the closing share price of December 21, 2020.