eSports group Gfinity Plc (LON:GFIN) is launching a £3.7mln equity raise to fund the next steps in its expansion.
Cash raised in a share placing will be invested as the group continues to develop its online media platform and its eSports tournament builder, as well as boosting the group’s events business.
An oversubscribed placing will see 74mln new shares issued to new and existing institutional investors at a price of 5p each.
Gfinity shares rose around 10% following the funding news, to change hands at 8.5p each.
“The fundraise has been supported by existing and new investors and gives us the capital we need to commercially leverage our strong position within the eSports industry and accelerate our growth,” said Neville Upton, Gfinity chief executive.
Upton highlighted that the placing strengthens the group’s balance sheet, and as such gives additional confidence to both investors and potential partners.
“Gfinity has built a unique set of assets: our events venue, our tournament system on Gfinity.net, our Tournament builder App, and the recently launched GTV media player, which sets us apart and allows us to deliver turnkey solutions to publishers and brands looking to access the eSports community,” he added.
“We already have a Blue Chip list of games publishers and brands that use us to stage their eSports events and over last year alone we attracted a total of 58.5m views from last year's events series and grew our registered user base to over 590,000 users.”