Business
Proposed placing to raise £2.25 million
Proposed placing to raise £2.25 million.
About this update from Gfinity Plc
[{"type":"text","content":"\n \n \n RNS Number : 5484I\n Gfinity PLC\n 02 April 2020\n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain. \n \n \n \n \n \n 2 April 2020\n \n \n \n \n \n Gfinity PLC\n \n \n (\"Gfinity\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Proposed placing to raise £2.25 million and notice of General Meeting\n \n \n \n \n \n Gfinity plc (AIM: GFIN), a world leading esports solutions provider, announces a proposed placing and subscription of 225,000,000 new ordinary shares of 0.1p each in the Company (\"Placing Shares\") at a price of 1 penny per share (\"Issue Price\") to raise £2.25 million, before expenses (the \"Placing\"), to be undertaken in two tranches.\n \n \n \n \n \n Highlights \n \n \n \n Proposed placing oversubscribed following demand from both new and existing investors\n \n \n Placing follows strategic review of the business, focused on restructuring the Group, including a sharpened strategic focus, a significant cost reduction programme and the adoption of a flexible variable cost operating model\n \n \n Net proceeds will provide capital to support further growth as the Company sharpens its strategic focus on three core areas of existing success and competitive strength: Motorsports, Own Community franchise and building community for others\n \n \n The Placing Shares will represent approximately 32 per cent of the issued share capital of the Company, as enlarged by the issue of the Placing Shares\n \n \n Of the funds raised, £1.68 million is conditional, inter alia, on the approval of shareholders at a general meeting of the Company to be held on 21 April 2020 (the \"GM\") of resolutions to, inter alia, provide authority to the Directors to issue and allot further new ordinary shares otherwise than on a pre-emptive basis, further details of which are set out below\n \n \n Warrants over ordinary shares will be issued on the basis of one for every Placing Share, exercisable at the Issue Price for 18 months, conditional, inter alia, on the GM\n \n \n \n \n \n \n \n John Clarke, Chief E...