Astralis to reconsider business model amid decreasing share prices

Astralis have announced via their official website the start of a strategic assessment of the business model to improve the club's financial situation. The reason for this decision is a significant share prices decrease.

The Astralis Board of Directors named four possible solutions that will be considered during the audit: reverse restructuring to private company, merging with another company, issuing new shares and selling all or some of the shares. It was highlighted that several of the listed options can become the result of the assessment of the club's business operations.

According to the Astralis management, the organization continues to generate profit for its shareholders. The club’s business plan is to receive a net revenue of $12-13 million at the end of 2023. At the same time, multigaming organization expects to profit up to $732K.

Astralis is not the first tier 1 club to encounter financial problems, as it earlier became known about a significant price drop of FaZe and Heroic shares. According to media reports, to continue its work, the American organization intends to go private, while Heroic have publicly announced the issuance of new shares, which should help at least in the near future.