Romanian game producer raises EUR 1 mln in private share placement

Firebyte Games, a Romanian startup specialized in developing mobile games, concluded on Monday, February 15, a private placement of shares that brought it around EUR 1 million.

Firebyte sold its shares at a price of 0.56 RON, and the offer was heavily (3.56 times) oversubscribed.

The investors will get 8.8 million shares, representing 25% of the company's shares, for RON 4.92 mln (EUR 1 mln). Thus, the company's valuation is now EUR 4 mln.

Next, Firebyte Games will list its shares on the Bucharest Stock Exchange's AeRO market.

The company plans to use the money raised from investors to expand its team and develop new games.

It estimates total revenues of RON 11.7 mln (EUR 2.4 mln) and a net profit of RON 1.3 mln (EUR 267,000) this year and a fast increase over the next years, according to a presentation document sent to potential investors.

Local brokerage firm BRK Financial Group, which founded and controls the majority stake in Firebyte Games, also managed the private placement.

"Firebyte Games has today taken a decisive step towards listing and aligning with corporate governance practices. The company has an ambitious development plan for the next period, and the stock market plays an important role in financing and developing the company," said Monica Ivan, CEO of BRK Financial Group.

The shares of BRK Financial Group went up by 15% on the Bucharest Exchange on Monday, after the company announced the successful share placement carried out by its subsidiary.

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