Gfinity PLC (LON:GFIN) confirmed on Wednesday that it is raising £6.7mln via a placing and subscription of 55.8mln new ordinary shares at a price of 12p each to expand its Gfinity Elite esports series as it also delivered first-half results showing a doubling in revenue.
The AIM-listed firm said in a statement that the net proceeds of the placing - which has been subscribed for by institutional and other investors, including existing shareholders - will be used to deliver strategic growth to fund the net cost of delivering Seasons 3 and 4 of the Gfinity Elite Series in the UK.
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The proceeds will also go to support the launch of Season 1 of Gfinity Elite Series Australia and continued investment in the development of Gfinity’s comprehensive e-sports digital platform, the firm added.
Commenting on the fund-raising, Neville Upton, Gfinity's chief executive officer said: “Continuing to build a high calibre team of proven leaders from relevant sectors, Gfinity is very well positioned to deliver significant value for its shareholders, as the e-sports market continues to mature.”
In a separate statement, the e-sports entertainment group reported first-half results showing a 103% increase in revenue to £1.8mln, up from £0.9mln a year earlier, driven by a mixture of partner programme revenues, sponsorship and broadcast revenues in respect of Gfinity Elite Series and ticket sales for live events.
The group’s pre-tax loss before tax was £7.7mln, up from a £1.7m loss in the previous year, an increase of £4.2mln sequentially on the previous six months, reflecting planned investment in the first two seasons of the Gfinity Elite Series, the expansion into Australia and in additional people and technology to capitalise on the enormous opportunity that the company has created.
The firm said its cash and cash equivalents, as at 31 December 2017 were £3.9mln, up from £2.7m a year earlier.
In early morning trading, Gfinity shares were 3.9% lower at 11.75p reflecting the fund-raising move.