Red&White Management SA (RWM), the majority shareholder of Romanian football club Dinamo 1948, launched a public funding round through SeedBlink, intending to raise more than EUR 1.94 million. Added to the amounts already committed by the anchor investors, the funding would reach a total of over EUR 4.34 million, the official announcement said.

Thus, investors who subscribe through SeedBlink can reach a total holding of 12.4% in RWM. This percentage corresponds to the project's current valuation of EUR 13.8 million before the round.

By subscribing through the SeedBlink platform, investors become shareholders, the company explained. This means that, as a shareholder, any investor benefits from a potential investment multiplication, proportional to the project's success. Moreover, the shareholders are part of the company's governance and can participate in taking important decisions during the project.

"The #Dinamo2028 project aims for the Dinamo 1948 team to become the most loved and respected club in Romania in the next 5 years. According to current estimations of the project, the value of the company is expected to reach EUR 53.7 million, representing a threefold increase," reads the press release.

The project needs capital injections of EUR 13 million. To reach this target, once the current funding round on SeedBlink ends, RWM plans to raise additional capital of EUR 4 million (through anchor investors and private placement) and EUR 4 million through the issue of corporate bonds until June 2024.

"To protect the investment of all investors, the company has foreseen the application of an anti-dilution mechanism at the time of exit to counterbalance the dilutions from the following capital increases," the press release said.

"The sums raised will be used for future player transfers, investments in sports infrastructure, as well as for the pre-financing of the working capital necessary to carry out the project until 2026 when it is estimated that FC Dinamo 1948 will become profitable."

With a history of 75 years, Dinamo is one of the most well-known football clubs in Romania. It recently re-entered the first league and successfully passed the licensing procedures. The club's track record includes 18 national titles, 13 Romanian Cups, 2 Romanian Super Cups, and 1 Romanian League Cup.

irina.marica@romania-insider.com

(Photo source: Red&White Management)