Atari Engages in Capital Increase to Repay Loans from IRATA LLC

Atari Boosts Capital to Repay Loans from IRATA LLC

Capital increase announced regarding loan repayment

Atari, a well-known name in the gaming industry, has made a significant move by announcing a capital increase to repay loans from IRATA LLC. This increase is noteworthy not only for its financial implications but also for its potential influence on the ownership stakes within Atari. The company has secured the repayment of €13.9 million owed to Atari SA, which has been loaned by IRATA LLC, managed by Wade Rosen, the Chairman and CEO of Atari SA.

Details of the Loan Repayment

The loans in question were provided at various intervals throughout 2024 and into early 2025, accumulating a total principle and interest of €13.9 million at an annual interest rate of 10%. In connection with this repayment, Atari will issue 97,718,187 new shares at full price, representing 21% of the company’s total share capital. Consequently, the overall outstanding shares will now amount to 559,082,939. This capital increase is pivotal in ensuring the liquidity and financial health of the company.

Ownership Changes Following the Repayment

One of the most significant outcomes of this transaction is the change in ownership percentages. Following the capital increase, IRATA LLC will command 41.7% of the share capital of Atari, along with approximately 39.5% of the voting rights. This move alters the landscape of shareholders within the company and offers greater influence to IRATA LLC.

Atari's Ongoing Financial Strategy

Atari's recent decisions are a part of its broader financial strategy aimed at not only maintaining but enhancing its market position. By repaying these loans and increasing its capital structure, Atari is strategically positioning itself for future growth. The total pending loan amount now stands at approximately €10 million owed by Atari and its subsidiaries to IRATA LLC.

Breakdown of Shareholder Equity

As previously mentioned, this capital increase brings about significant changes to the equity distribution. Prior to the new shares being issued as a result of the capital increase, diverse stakeholders, including IRATA LLC, Stephen Kick, and public entities held varying percentages of shares. Now, following the increase, we are witnessing shifts in the ownership landscape with increased percentages among top stakeholders, such as IRATA LLC strengthening its foothold substantially.

About Atari

Atari is a venerable name in the interactive entertainment sector, renowned for its varied gaming offerings. The company is home to a portfolio that boasts over 400 unique games and franchises, which include beloved classics such as Asteroids®, Centipede®, and Missile Command®. With headquarters in both New York and Paris, Atari continues to captivate audiences across generations. For more information, visit the official Atari website.

Frequently Asked Questions

What is the purpose of the recent capital increase by Atari?

The capital increase will be used to repay loans amounting to €13.9 million provided by IRATA LLC, allowing for a stronger capital structure for Atari.

Who manages IRATA LLC?

IRATA LLC is managed by Wade Rosen, who also serves as the Chairman and CEO of Atari SA.

How many new shares will be issued after the capital increase?

Atari will issue 97,718,187 new shares, which represents 21% of its total share capital.

How does this affect the ownership structure of Atari?

Post-repayment, IRATA LLC will hold 41.7% of Atari’s share capital, significantly increasing its influence within the company.

What are Atari’s key gaming franchises?

Atari oversees iconic gaming franchises such as Asteroids®, Centipede®, and Missile Command® among others, contributing to its legacy within the gaming industry.

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