Heroic is reportedly in financial troubles

According to some reports, Heroic, one of the best CS:GO teams, is in a financial crisis. Heroic’s CS: GO... Maria | 21. March 2023

According to some reports, Heroic, one of the best CS:GO teams, is in a financial crisis.

Heroic’s CS: GO team has maintained a very high level over the past few months; however, the company’s finances are reportedly currently experiencing financial problems.

Allegedly the crisis is so severe that the organization has called for an extraordinary investor meeting at a moment’s notice. The purpose of this meeting is to try to raise additional funds.

Financial problems of the Heroic esports organization

According to the website Pley, the Norwegian esports organization Heroic yesterday called for an extraordinary meeting at 4:00 pm CET.

The call for the meeting was made on March 13, citing a statement from January 30.

Joachim Haraldsen noted the need for additional capital at the company’s last board meeting. Haraldsen stated that to sustain the company until the end of 2025, NOK 80 million, about $7.5 million, was needed.

In the same call document, it is specified that the company needs to raise NOK 10 million, almost $1 million, by this summer.

On the other hand, we should comment that, so far, Heroic has not yet made public its annual report for the past year; however, for the two companies Heroic AS and Heroic Group AS, the loss was predicted at NOK 25 million, almost $ 2.4 million.

By the end of 2021, the cash balance of the two companies was slightly less than NOK 37.5 million. However, Heroic has increased its shares by almost 8 million since the NOTC listing debut in February 2021.

This figure may increase much more after yesterday’s board meeting. However, the company’s share price is falling, from NOK 19.76 to NOK 0.8.

Heroic 2021 numbers

Credits: Euronext NOTC

About Heroic

Heroic organization was founded in 2016; in February 2021, it was bought by Joachim Haraldsen, the founder of Omaken Esports.

Heroic currently owns lineups in:

  • Sim Racing
  • Rainbow Six Siege
  • CS:GO

The most successful organizational team is the CS:GO team; they have taken second place in major competitions such as IEM Rio Major and IEM Katowice in February 2023. But their most significant achievement so far was first place in the BLAST Premier Fall Final 2022.

However, the other two teams in the organization rarely manage to achieve the success of the CS:GO squad.

Previously Heroic also had a PUBG team. However, it was no longer sustainable for the organization to keep them competing. So they decided to eliminate their PUGB team.

At the moment, it is unknown what may happen to the second-best CS:GO, team if the company fails to raise the necessary money to continue operating.

Header: Heroic