PCG Entertainment Plc (LON:PCGE) has raised a total of £675,000, before expenses, through a placing and a subscription of new ordinary shares with the proceeds to be used to accelerate the Asia-Pacific online gaming and media company’s business strategy.
In a statement, the AIM-listed firm said it has raised £550,000, before expenses, through a placing of 275mln new ordinary shares at a price of 0.2p each by the company's broker, Beaufort Securities.
In addition, the group said £125,000 has been raised by a subscription for 62.5mln new ordinary shares, also at a price of 0.2p each, by Black Swan FZE of which PCG Entertainment boss Richard Poulden is chairman and which is controlled by his family trusts.
PCGE said its board - apart from Richard Poulden - having consulted with the company's nominated adviser, Allenby Capital consider that the terms of the subscription by Black Swan “are fair and reasonable insofar as shareholders are concerned.”
It added that no commission or fees are payable in relation to this subscription by Black Swan.
In late afternoon trading, PCGE were changing hands at 0.28p each, down 0.06p or 17.9% on Friday’s closing price.
Termination claim settled last week
PCGE shares have rallied following news last week that the firm had reached a settlement with its former boss, bringing to an end a ten-month legal battle.
Nick Bryant was axed last March after the service contract with Electric Warrior Ltd, which provided Bryant’s services as CEO, was terminated.
Bryant and Electric Warrior brought an employment tribunal against the company as well as chairman Richard Poulden and fellow director Michael Mainelli personally.
Those claims have now been withdrawn after PCGE agreed to pay £286,350 to the two parties.
In a statement at the time, PCGE said the settlement was “in the best interests of shareholders” given that it may have taken until mid-2019 to get a ruling had the matter gone through the courts.
It added: “This would prevent further funding of the business and prevent the creation of value for shareholders.”