Shares in Devolver Digital Inc (AIM:DEVO) rose 13% in early trade after the independent video game creator successfully raised £7.9 million by issuing stock at a premium to its current price.
The share placing at 33p was "originated by an inbound enquiry from existing shareholders", the company said after hours on Monday.
"The net proceeds of the Placing will be used to further strengthen the balance sheet, providing additional flexibility for the company to be able to take up further opportunities as they arise over the medium term and deliver shareholder value," it added.
In early trading, the stock was up 4p at 34p.
Repeating is 'buy' recommendation, regional broker Shore Capital said: "The placing comes after last week's brief but positive trading update which confirmed that group trading was in line with current consensus expectations for the financial year 2024.
"We continued to view DEVO as an important player within the indie space, given its strong brand awareness and key industry relationships.
"Early signs of improved trading have been encouraging, in our view, supported by actions undertaken during the financial year 2023 to improve profitability over the medium term."