Esports group Gfinity PLC (LON:GFIN) is set to raise £7mln through an oversubscribed placing to help support the next stage of its development and accelerate its international expansion.
Boss Neville Upton said the AIM company has made “significant progress” over the past six months or so.
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In that time, Gfinity has launched its Elite Series competition here in the UK, unveiled a joint venture that will take it into Australia and acquired CEVO in the US, all whilst delivering a number of events for clients such as Formula One.
“Following on from these achievements, I am delighted to be able to announce this conditional placing, the funding from which will enable us to sustain our momentum to becoming a global leader in esports,” Upton added.
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Shares will be placed at 27p apiece, which represents a small discount – a little over 2% – to Friday’s closing price. In late afternoon trading, Gfinity shares were up nearly 5%, or 1.38p at 29.00p.
The placing is subject to shareholder approval at a general meeting which is to be held on 11 October, the company said in a statement.
Assuming it gets the green light from investors, the shares will be admitted to AIM the following day (12 October).
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Current major shareholders, including Charles Street International and Nigel Wray, are supporting the fundraise.
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