Business
New investment, subscription, loan conversion
New investment, subscription, loan conversion.
About this update from Blue Star Capital Plc
[{"type":"text","content":"\n \nRNS Number : 2869W Blue Star Capital plc 24 December 2013 \n \n\n24 December 2013\n \n \nBlue Star Capital plc\n(\"Blue Star\" or the \"Company\")\n \nNew investment, share subscription, loan conversion and issue of warrants\n \n \nFurther to the announcement on 18 December 2013, Blue Star is pleased to announce that it has made an investment in Oak Media Limited (\"OAK\"). OAK is an early stage gaming technology aggregator which intends to supply solutions to mainstream brands and broadcast operators. \n \nThis is the Company's first investment in the gaming sector and follows the change in the Company's investing policy (\"Investing Policy\") announced in November 2013. The board believes that the Company's investment in OAK represents an excellent opportunity to create value for the Company's shareholders.\n \nSubscription\n \nThe Company also announces that it has raised GBP 200,000 before expenses by way of a subscription (the Subscription\") of 40,000,000 New Ordinary Shares at a price of 0.5p per share (the \"Subscription Shares\"). The Company intends to use the net proceeds of the Subscription to fund its investment in OAK on the terms described below and for general working capital purposes including, potentially, a further redemption of the shareholder loan (\"the Loan\") entered into on 28 April 2011 and thereafter subsequently extended to the end of January 2014. In addition, Blue Star has agreed a further partial conversion of the Loan. \n \nInvestment in OAK \n \nOAK has been formed in order to take advantage of the global growth in gaming for entertainment amid a fast changing regulatory environment.\n \nOAK intends to become an aggregator of the best gaming technologies and to provide the best available gaming solutions, so it can enter the lucrative gaming market with modest investment and make rapid returns.\n \nOAK believes that over the next five years, leading brands and broadcast TV will play an increasingly larger role in gaming growth and player recruitment, as the following market forces emerge: \n \n· relaxation in regulatory rules worldwide - particularly in the USA;\n· the need for brands to migrate to other strong revenue lines;\n· gaming for entertainme...