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Gfinity raises £2.25mln to support growth in strategic areas

The esports firm said it had raised the funds through an oversubscribed placing with demand from both new and existing investors

Gfinity PLC - Gfinity raises £2.25mln to support growth in strategic areas

Gfinity PLC (LON:GFIN) has raised £2.25mln through a share placing that it said will support growth in its “three core strategic areas” including motorsports, building its own community of gamers, and helping others to build communities.

The esports specialist said it had raised the funds through a placing of 225mln shares at a price of 1p each, a 33% discount to its closing share price on Wednesday.

READ: Gfinity surges as it cuts losses by 45% in half-year

Gfinity said the placing had been oversubscribed following demand from both new and existing investors, and chief executive John Clarke said the fundraising marked “the final step” of a strategic review process.

“The funds raised further strengthen our financial position following on from the previously announced sharpened strategic focus for the business and the significant reduction of our cost base”, the CEO said in a statement.

“We now have a solid cash position to ensure that Gfinity can continue to capitalise on the exciting market opportunities we see ahead. I'm pleased that in this extremely challenging time our existing investors, as well as new investors, have shown their support for this fundraise, our strategy and our future", he added.

The company's shares were 29.3% lower at 1.06p one early deals, a 6% premium on the placing price.

--Adds share price--

Quick facts: Gfinity PLC

Price: 3.3 GBX

AIM:GFIN
Market: AIM
Market Cap: £25.85 m
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