Nodwin Gaming Invests $39 Million in Freaks 4U Gaming via Convertible Note

On December 29, Nodwin Singapore (NODWIN Gaming International Pte. Ltd.), a division owned by NODWIN Gaming, signed an agreement with Berlin-based esports marketing company Freaks 4U Gaming.

The agreement is for a convertible note of €3.6 million, to be paid in cash. If the purchase option is exercised, NODWIN would hold 7,366 shares. The percentage of ownership would depend on the terms and conditions of the convertible note. In addition, NODWIN is exploring ways to work with Freaks 4U to enhance its efforts in the PC gaming space.

Freaks 4U Gaming GmbH currently has 104,764 shares outstanding. Therefore, a conversion of NODWIN Gaming’s loan through the issuance of new shares would value Freaks 4U Gaming at approximately €51.2 million. Freaks 4U Gaming is owned by co-investor FRE Gmbh & Co. KG (which holds a 44.83% stake), co-founder and CEO Michael Haenisch (who holds a 33.27% stake), co-founder Jens Enders (who holds a 14.56% stake), Game.Fin S.r.l (which holds a 5.46% stake), and Senior Vice President of Product, TV Productions, and Media Matthias Remmert (who holds a 1.88% stake).

A convertible note is a type of bond (debt) issued by companies that is convertible into shares of the same, according to the circumstances, terms, and conditions established by the issuer.

Freaks 4U Gaming has had some financial challenges in recent months, culminating in several adjustment measures, including the transfer of the Northern League of Legends Championship (NLC) license to Denmark-based esports platform and organizer Leagues.gg and some layoffs in late November. However, the CEO of Freaks 4U Gaming, Michael Haenisch, is excited about the potential collaboration with NODWIN Gaming and exploring possible synergies and ideas in the future.