MAY NOT BE PUBLISHED, DISTRIBUTED, OR RELEASED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, OR JAPAN.
This message does not constitute a prospectus. No person should purchase or subscribe any securities in Astralis Group A/S (“Astralis Group” or the “Company”) except when such happens on the basis of information in the prospectus published by the Company in connection with the offering and admission of such securities to trading and official listing on Nasdaq First North Growth Market Denmark.
Astralis Group publishes prospectus for its IPO in Copenhagen
Astralis Group is a leader in a fast-growing global industry. Astralis Group builds high performing teams, global brands, engaging media channels and solid, innovative commercial partnerships. Through this IPO, Astralis Group aims to consolidate and strengthen its international position and invest further in securing a continued growth, winning team brands and an extensive, international media portfolio.
Background for the IPO – growth and expansion
In the period from 18 November 2019 at 09:00 (CET) to 29 November 2019 at 23:59 (CET), the Company is offering a minimum of 13,966,480 and a maximum of 16,759,777 new shares at a price of DKK 8.95 per share in connection with a listing on Nasdaq First North Growth Market Denmark. A total of 41 pre-subscribers have entered into binding agreements to subscribe to 6,368,656 of the new shares, equivalent to approximately 46% of the minimum number of new shares.
The expected gross proceeds of minimum DKK 125 million and maximum DKK 150 million will be used to secure the buy-in of Astralis Group’s teams in their respective leagues (50-60%), reaching a broader international audience (15-20%), the development of digital products as part of a direct-to-consumer strategy (10-15%), and for broadening the current brand portfolio (10-15%).
A sustainable and scalable business model
In short, the strategic focus of Astralis Group is centred around three elements that form the “Value Creation Engine” by:
The performance model – recognising players as athletes
The consistent results and high rankings by Astralis Group’s teams is secured through the unique performance model, which is applied to all teams and players to significantly enhance and stabilise their performance. The model balances three core dimensions into a winning recipe for player and team performance, physical (e.g., nutrition and sleep), mental (e.g., dynamics and profiling), and technical (e.g., skills and playbook).
In addition to the standard setup of an esports team, Astralis Group’s performance model also applies team support such as assistant coaches, a sports director, a sports psychologist, a nutritionist, and data analysts. It further provides an experienced and connected organisation around commercial opportunities, press, and social media work, which enables the players to concentrate on their main objective: Constantly improving their performance.
Brand building – engaging brands that connect with fans
Astralis Group establishes team brands as a portfolio, enabling the brands collectively to reach the widest possible fanbase. To build the brands, resources and processes are pooled within the Company.
Astralis Group’s branding model builds on each team to establish and evolve the teams’ voices toward their specific audience. Teams within Astralis Group build relationships with different audiences, allowing them to position themselves best toward these, while collectively reaching a larger mainstream audience.
Commercial platform – building valuable relationships with fans
The successful implementation of the performance model and brand building results in loyal audiences, which is Astralis Group’s main asset for value creation, either directly through merchandise or indirectly through commercial partnerships. Value is created for the audience and Astralis Group through three main revenue streams:
The global esports market has great potential
The esports industry, a subset of the video gaming market, shares several characteristics with professional traditional athletics sporting events. As with the latter, esports is centred around competitive (electronic) sports events on a professional level, played either by individual (single) players or in teams (multiplayer), with the playing field being either computer, console, or mobile. The large amount of different gaming genres and titles make esports as diverse as traditional sports, and likewise, the games are often played as a tournament in front of a live audience while simultaneously being broadcasted through TV networks, but mostly through online channels.
Revenues in the esports industry are generated from viewers through sponsorships, merchandise, and media rights, and are, according to figures from NewZoo, expected to grow by 20% p.a. reaching USD 1.8 billion in 2022, primarily driven by increases in viewership and revenues per viewer. Astralis Group is well-positioned to benefit from this, with its leadership status and proven record of the performance model, brand building capabilities, and commercial platform.
Information about the offering of new shares
Astralis Group is offering a minimum of 13,966,480 and a maximum of 16,759,777 new shares at an offer price of DKK 8.95 per share of nominally DKK 0.01 each.
The offering is not guaranteed. However, a total of 41 investors have made binding commitments to subscribe to a total of 6,368,656 shares, equivalent to approximately 46% of the minimum number of new shares. If buyers of minimum 13,966,480 offered shares are not found, the IPO will not be completed.
Application has been made for the Shares to be admitted to trading on Nasdaq First North Growth Market Denmark under the symbol “ASTGRP”. This is based on the condition that Nasdaq First North Growth Market Denmark’s requirements regarding a sufficient number of qualified investors, liquidity and free float are fulfilled and that the offering is completed.
The offering may be withdrawn by the Issuer at any time before the Company has published the results of the offering. The completion of the offering is conditional upon the offering not being withdrawn. The offering may, inter alia, be withdrawn if there are insufficient buyers for a minimum of 13,966,480 new shares equivalent to gross proceeds of DKK 125 million. Likewise, the offering may be withdrawn if the liquidity of the new shares offered to investors does not meet Nasdaq First North Growth Market Denmark’s requirements.
Tofte & Company is appointed as Certified Adviser and law firm BKH Law is legal adviser to the Company in connection with the IPO. Danske Bank is the issuing agent and settlement agent in connection with the offering. Deloitte is the company’s auditor.
Ownership and management
As of the date of the prospectus, the following shareholders have an ownership stake or voting rights of minimum 5% immediately before the offering:
The Company’s board of directors is comprised of Jette Nygaard-Andersen, Christian Swane Mourier, and Claus Zibrandtsen. The Company’s executive management is comprised of Nikolaj Nyholm, Anders Hørsholt, Jakob Lund Kristensen, and Jakob Hansen.
Prospectus and information meetings
The prospectus, application form, et cetera are available on Astralis Group’s investor page at https://www.astralisgroup.net/investor.
Information regarding information meetings, as well as how to register to such, are also listed on the investor page above.
Steen Laursen, VP of Comms & Brands, Astralis Group
Tel: (+45) 61 43 89 22, Email: firstname.lastname@example.org
Astralis Group A/S
This announcement does not constitute an offering circular. No one should purchase or subscribe for any shares in Astralis Group A/S (“Astralis Group” or the “Company”), except on the basis of information in the offering circular published by the Company in connection with the offering and admission of shares to trading on Nasdaq First North Growth Market Denmark. Copies of the offering circular are available from the Company’s registered office and, subject to certain exceptions, on the website of the Company.
This announcement is not an offer to sell or a solicitation of any offer to buy any shares issued by Astralis Group in any jurisdiction where such offer or sale would be unlawful and the announcement and the information contained herein are not for distribution or release, directly or indirectly, in or into such jurisdictions.
In any member state of the European Economic Area (“EEA Member State”), other than Denmark, that has implemented Directive 2003/71/EC as amended (together with any applicable implementing measures in any EEA Member State, the “Prospectus Directive”), this announcement is only addressed to and is only directed at investors in that EEA Member State who fulfil the criteria for exemption from the obligation to publish an offering circular, including qualified investors within the meaning of the Prospectus Directive.
Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and that can be identified by words such as “believe”, “expect”, “anticipate”, “intends”, “estimate”, “will”, “may”, “continue”, “should”, and similar expressions. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.