Investors abandon Pirate Bay suitor

[joeblow]

Investors abandon Pirate Bay suitor

http://www.thelocal.se/21718/20090827/

Global Gaming Factory X (GGF), the firm that wants to take over the Swedish file sharing site The Pirate Bay, has been roundly criticised by market watchers for not being able to prove that it has the money for the purchase.

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The company's stock is listed on the Aktietorget equity marketplace and trading in GGF stock remains suspended after being criticised for deficient information.

Aktietorget has now summoned its disciplinary committee to consider whether GGF should remain listed.

"After a meeting with the company on August 26th Aktietorget has concluded that the company can not be considered to have the capability to inform shareholders in a correct, relevant and reliable manner," according to an Aktietorget press release on Thursday.

Aktietorget decided to suspend trading in GGF shares on August 21st and on Wednesday the decision was taken to extend this suspension.

The company writes that GGF was told to present proof that the sum of money required for completing the purchase of The Pirate Bay was available, but has not been able to do so.

GGF has meanwhile issued a statement explaining that several investors in the project have pulled out as a result of "strong concerns following recent turbulence in the media."

While the firm has not been able to demonstrate the existence of the funds it claims that the investors are all "existing shareholders in GGF and known to the management."

Global Gaming Factory X, which is a Swedish online games firm, claimed on June 30th that it had acquired The Pirate Bay for a sum of 60 million kronor ($8.4 million).

But recent media reports have suggested that the acquisition announcement was merely a bluff to boost Global Gaming Factory's share price and the Swedish Economic Crime Authority has since opened an investigation into potential irregularities.

TT/The Local (mailto:news@thelocal.se">news@thelocal.se/08 656 6518)

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