Helsinki-based mobile game company Nitro Games Oyj has made the decision to change its liquidity provider to Erik Penser Bank AB, starting on November 7th, 2023. This transition will involve terminating the existing agreement with their current provider, Lago Kapital Oy.
Overview of Nitro Games
Founded in 2007, Nitro Games develops and publishes mobile video games aimed primarily at hardcore gamers. Their team comprises gaming experts covering the full spectrum from game creation to release to live operations.
With a focus on high quality shooter games for mid-core audiences, Nitro Games has established its niche. The company leverages its proprietary NG Platform and NG MVP process to rapidly validate game concepts during development stages.
Some of Nitro Games’ top titles include Autogun Heroes, NERF SuperBlast, Lootland, Heroes of Warland, Medals of War and Raids of Glory. In addition to its own intellectual property, the studio provides services to major mobile gaming firms, producing successful projects for the likes of Rovio and Wargaming.
Since 2017, Nitro Games has been a publicly traded company listed on the Nasdaq First North Growth Market in Finland, trading under ticker NITRO. It positions itself as a leading Nordic games developer, known for its technical excellence and active gaming communities.
Rationale for Liquidity Provider Change
Liquidity providers are financial institutions contracted by public companies to facilitate trading and maintain fluid markets for their shares. By constantly buying and selling shares, they enable steady access to liquidity.
Since first listing publicly, Nitro Games had retained Lago Kapital Oy as its sole liquidity provider. However, with its agreement expiring, Nitro Games chose to make a change and shift its provider to Erik Penser Bank.
Several factors likely contributed to this decision:
Pursuing improved trading conditions in terms of spreads and liquidity access
Preparing infrastructure for expected growth as Nitro Games matures
Diversifying partners to reduce reliance on a single liquidity provider
The move represents a strategic optimization of trading operations as the company scales up. The new partnership with Erik Penser Bank will officially start on November 7th.
Erik Penser Bank Profile
Headquartered in Stockholm, Erik Penser Bank offers a range of capital markets services including investment banking, trading, research and liquidity provision. Founded in 1993, it possesses deep expertise across the Nordic regions.
With over 300 liquidity provider mandates since 2002, Erik Penser Bank has established itself as a leader in supporting Nasdaq Nordic. It currently serves over 50 public companies, demonstrating strong experience tailoring solutions.
Its offerings range from automated algorithmic trading to designated market making with manual oversight. Known for its specialization in small and mid-sized companies, Erik Penser Bank is seen as a top choice for liquidity needs among Nordic growth firms.
By selecting this new partner, Nitro Games looks to leverage these capabilities and gain strategic advantages as a young public company maturing in the Nordic markets.
To enable a smooth shift between liquidity providers, Nitro Games has defined a clear timeline for the transition:
On November 6th, the agreement with Lago Kapital Oy will expire at market close, concluding the relationship.
Starting on November 7th, Erik Penser Bank will officially commence liquidity provision for Nitro Games.
During the transition, both providers may be active in parallel briefly to avoid liquidity gaps.
Overall, trading is expected to remain consistent, with minimal impact on volumes or dynamics.
With its seasoned experience onboarding liquidity clients, Erik Penser Bank is equipped to handle the switch efficiently. Nitro Games can leverage existing processes to ensure continuity.
The mobile gaming industry has exhibited strong momentum, projected to become a $136 billion market by 2025 per NewZoo forecasts. As an established player with multiple hit titles, Nitro Games is poised to benefit from the favorable sector trends.
Upgrading to a top-tier liquidity provider aligns with Nitro Games’ growth trajectory as it matures into a seasoned public company. The partnership can bolster trading dynamics through tighter spreads and increased volumes, potentially enhancing shareholder value.
Looking ahead, Nitro Games aims to expand its portfolio with new games for existing intellectual property as well as new franchises. It also plans to scale up publishing operations, demonstrated by its recent self-published launch of Heroes of Warland on Nintendo Switch.
With seasoned leadership, cutting-edge technical capabilities, and expertise engaging mid-core gamers, Nitro Games is in a strong position to execute on its strategy. Optimizing trading operations and infrastructure will provide crucial support as the company enters its next stage of evolution.
Below are answers to some frequently asked questions regarding the liquidity provider transition:
What role does a liquidity provider play in public markets?
By constantly trading shares, liquidity providers enable transactions to occur smoothly. They supply stability and prevent volatility in share prices.
Why is transitioning providers beneficial for Nitro Games?
The new partner, Erik Penser Bank, brings specialized expertise supporting Nordic growth companies like Nitro Games. This can improve trading dynamics.
How will daily trading of Nitro Games stock be impacted?
The shift is designed to minimize disruption. Both providers will overlap briefly to ensure consistent liquidity access during the transition.
What advantages does Erik Penser Bank offer?
As a leader in the Nordic markets, they can provide tailored solutions to enhance liquidity for Nitro Games as its business expands.
When does Erik Penser Bank formally start as liquidity provider?
The first day of service will be November 7th, 2023. The existing agreement expires on November 6th.
Does the new provider affect Nitro Games’ core business?
No, it solely involves administration of public share trading. The company’s operations, finances and plans are unchanged.
The transition to Erik Penser Bank as its new liquidity provider constitutes an important milestone as Nitro Games evolves into a mature public company. Choosing a partner well-versed in supporting Nordic firms can strengthen its trading dynamics.
While maintaining its core focus on creating quality mobile games, Nitro Games is also optimizing its backend infrastructure. This will provide the tools and stability needed to support growth in the thriving gaming sector.
Overall, the move aligns with Nitro Games’ maturation and represents a positive step in preparing the company for long-term success. With an optimized foundation for public trading, Nitro Games can devote its energy to releasing great games for audiences worldwide.
Bernie Grady is a technology and business journalist who writes about trending topics in the world of technology, entertainment, and business. She has a keen eye for spotting new trends and loves to share her insights with her readers. Bernie has been writing professionally for over 10 years and has experience covering a wide range of topics. When she’s not writing, she enjoys spending time with her family and friends.