The embattled acquisition giant Embracer Group - which holds numerous studios and developers including mobile - has raised $182.7m via a share issue.

Embracer recently took a huge blow when a reported $2bn fell through mere hours before the company released lukewarm Q4 financials. The results were sudden and disastrous for their share price with Embracer announcing significant layoffs and restructuring soon after. The company's acquisition-heavy business model that has seen the company snap up studios, IP rights and more, has grown increasingy in question.

All of which led to the company issuing 80m new shares in order to shore up their finances. A share issue in this case will produce cash, but, thanks to more shares entering the market, will produce a loss in the value of individual stocks in the same way one might see with inflation. It's a risky gamble, but Embracer clearly feels it's necessary to shore up their finances going into the restructuring.

Extra stress for embracer

The latest move will smack of desperation for many observers as the company seeks to shore up what was always a business model based primarily upon constant expansion. Despite good performance by some aspects of their business - such as Deep Silver who saw record sales for their title Dead Island 2 - the collapse of the $2bn deal seems to have caused huge headaches for the company.

In a statement, CEO and co-founder Lars Wingefor stated, “The strong support from both existing and new investors in this share issue proves a firm belief in Embracer Group’s strategy to become a stronger company by unleashing the significant untapped potential in the group. While the restructuring program is developing according to plan, the proceeds from this share issue will further strengthen our financial position, improving both financing cost and our operational flexibility, and enabling us to focus on the key aspects of the program. Ultimately, this will empower our entrepreneurs and creators to continue to deliver outstanding and memorable experiences to gamers and fans across the globe."

It remains to be seen if this, and the significant structuring taking place, will be enough to put the company back on the right track in a timely manner.