Gfinity Plc (LON:GFIN) has revealed that its shares were in high-demand as it raised £6.25mln in new equity.
A share placing to new and existing institutional and other investors was oversubscribed, the company said.
The eSports promotor is set to issue 31.25mln new share, representing about 16.56% of the company, at a price of 20p per share.
Cash raised in the placing is earmarked for the continued development of the group’s eSports business – it will support the launch of the Gfinity Elite Series tournament this summer, back the group’s software projects that will deliver a proprietary automated eSports competition management systems, and it will provide investment into the group’s online broadcasting platform.
"I'm delighted to announce this oversubscribed Placing, reflecting support from both new and existing shareholders and the success of the Gfinity management to date in establishing a leading brand in the fast-growing eSports sector,” said chief executive Neville Upton.
“These new funds will allow Gfinity to further invest in the Elite Series, a new "bedroom to podium" eSports structure in UK, as well as investing further in our market leading technology platform and personnel. Importantly, we are now well positioned to take advantage of the opportunity presented by continuing growth in the eSports sector and the strong reputation that the company has already carved out within that."