In a notable corporate development, Atari CEO Wade Rosen has chosen to convert a $2 million loan into company shares through his holding company IRATA LLC. The conversion, announced on January 24, 2025, transforms the loan, which previously carried a 10% annual interest rate, into over 18 million newly issued Atari shares at €0.12 per share.
The decision, unanimously approved by Atari's Board of Directors, will increase IRATA LLC's ownership stake to 29.37% of Atari's total share capital. The transaction adds 18,145,343 new shares to Atari's outstanding shares, bringing the total to 460,967,261.
The original loan was issued on January 22, 2024, and this conversion represents a shift from guaranteed interest earnings to increased equity ownership in the iconic gaming company. Following this transaction, IRATA LLC maintains approximately €21 million in outstanding loans to Atari and its subsidiaries.
This move aligns with Atari's capital management strategy and demonstrates Rosen's continued commitment to the company's long-term growth. The share conversion was executed without any price discount, reflecting confidence in Atari's current market valuation.
The transaction, completed under the authorization granted at the September 2024 shareholders meeting, showcases a strategic shift in how the company manages its debt obligations while strengthening its leadership's stake in the business.