Business
Proposed placing to raise £3.7m
Proposed placing to raise £3.7m.
About this update from Gfinity Plc
[{"type":"text","content":"\n \nRNS Number : 1346D Gfinity PLC 04 July 2016 \n\n \n \n \nGfinity plc\n(\"Gfinity\" or the \"Company\")\n \nProposed placing to raise £3.7m\nPosting of Circular and Notice of General Meeting\n \nGfinity plc (AIM: GFIN), a leading eSports business, announces a conditional placing of 74,000,000 new ordinary shares (\"Placing Shares\") in the Company at a price of 5p per Placing share (the \"Placing\") to raise £3.7m (before expenses), subject to Shareholder approval, to provide general working capital and accelerate growth.\n \nBackground\nFounded in London during 2012, Gfinity has quickly established itself as one of the world's leading companies in the fast-growing eSports sector. The business enjoys strong relationships with game publishers, players and the wider eSports community and has already built a strong reputation for delivering high quality competitions, both on-line and off-line, as well as producing industry leading eSports broadcasts.\n \nThe Company focuses on four principal areas of monetisation:\n· Gfinity branded events, where the Company receives payment for the commercial rights; including sponsorship deals and advertising revenue from multi-national enterprises that wish to be affiliated with the eSports demographic\n· Third party eSports events, funded by game publishers, major brands and sponsors\n· Gfinity Arena rental income from letting the arena for product launches, content creation and other events\n· Online competition revenue from players of all levels who compete on the Gfinity platform for prizes\n \nTransaction highlights\n· Oversubscribed Placing with new and existing Institutional and other investors of 74,000,000 New Ordinary shares at 5p per ordinary share to raise proceeds of £3.7 million before expenses:\n§ Placing supported by existing shareholders: Euroblue Investments Limited (Nigel Wray), Hargreave Hale Limited and MD Barnard\n§ New investors include Hong Kong based Charles Street International Holdings Ltd\n· The net proceeds of the Placing will be deployed as follows:\n§ expanding sales and marketing expenditure to build on the strong reputation and suite of assets that Gfinity has create...