Embracer shareholders to approve Coffee Stain Group spin-off

Embracer Group has called an extraordinary general meeting for shareholders to vote on the planned spin-off and separate listing of its Coffee Stain Group unit, a key step in the company's major restructuring plan.

The meeting is scheduled for Nov. 3, where a resolution will be proposed to distribute all shares in Coffee Stain to Embracer's current shareholders, the company said Wednesday.

Under the proposal, investors would receive one share in Coffee Stain for each Embracer share they own.

The Swedish video-game company intends to list Coffee Stain on the Nasdaq First North Premier Growth Market in Stockholm by the end of 2025.

The move is part of a wider plan to split Embracer into three separate, publicly listed companies following a period of poor performance that included a sharp drop in quarterly profit and a cut to its full-year forecast.

After the spin-off, the remaining Embracer business is set to be renamed Fellowship Entertainment.

Coffee Stain is the developer and publisher behind successful games such as "Goat Simulator," "Valheim," and "Deep Rock Galactic."

"Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary—but in a good way," Coffee Stain CEO Anton Westbergh said when the plan was announced in May.