Alan Wake and Control developer Remedy has entered into a €15m convertible loan agreement with technology conglomerate Tencent. This type of loan is an agreement that can be converted into a predetermined number of equity shares at a later date.
Tencent's loan is still to be approved by Remedy's Extraordinary General Meeting, which is scheduled to be held by 24th October. Following its approval, Tencent will "have the right to convert the loan into new Remedy shares in accordance with the terms and conditions of the convertible rights" three years after the drawdown.
"Part of Remedy's long-term strategy has been to strengthen our position in the value chain, to have more control over how our games are commercialised, and to grow our share of the value these games can create," Remedy CEO Tero Virtala said today, in a press release detailing the loan.
"As we move towards self-publishing, this financing will support us in developing and fully realising the potential of the games we have in development and successfully carrying out the commercial activities of our next self-published games."
The studio exec said Tencent's investment in the company "demonstrates strong confidence in Remedy's long-term vision and strategy".