Bidstack Group PLC (AIM:BIDS, OTC:FTBGF) has launched a £10mln equity fundraise as it seeks to develop new software and support working capital as it progresses its product strategy, R&D and commercial growth.
The in-game advertising company, in a statement after Wednesday's close, said it plans to develop a platform that will allow its commercial rights holder clients to have direct control of the ad content that appears in their intellectual property.
It is being backed by Irdeto, a service provider to the games industry specialising in cybersecurity, anti-cheat and anti-piracy technology. Irdeto has agreed conditionally to invest £5mln through a subscription agreement.
"I am pleased to share that we have secured our first strategic investment, from Irdeto,” said James Draper, Bidstack's chief executive.
“Irdeto, is one of the world's leading cybersecurity businesses, with their gaming division 'Denuvo' being trusted as a leading game security provider across the world's most celebrated gaming platforms and franchises. Irdeto's positioning across the gaming and entertainment space will lead to many opportunities for our two companies to collaborate going forward, as strategic partners."
Bidstack, this morning, confirmed it is issuing 175.4mln new shares in the placing to institutional and other investors at 2.85p, along with 175.4mln subscription shares subscribed for by Irdeto.
The placing and subscription shares will represent some 38% of the company’s enlarged share capital.
In parallel, further equity will be sold via retail offer via REX (available through brokers AJ Bell, Hargreaves Lansdown, Interactive Investor, and Jarvis).
New shares issued through the fundraise will be priced at 2.85p each.
Placing shares will be issued in two tranches with one comprising shares intended to qualify for the purpose of EIS or VCT, Bidstack noted, whilst the other tranche will not qualify – the EIS/VCT share issue will fund the development of the new platform.
Bidstack provided investors with a brief business update as part of its announcement.
It told investors that its contract with Azerion commenced and it has also begun onboarding sales teams across key markets - such as the UK, Germany, France, Spain, Netherlands, Italy, Nordics, Portugal and Belgium – and it has started to see success with its enterprise sales efforts.
The company added that the new growth strategy in the US is the next stage in Bidstack's evolution.
“Bidstack has now grown sufficiently as a business that it is ready and able to tackle the huge, untapped opportunity for in-game advertising within the US market, with the company's plans building on the recent progress in its technology,” it said.
It is now seeking to recruit sales, gaming and marketing professionals with experience in digital advertising and with local market knowledge. Some key hires were recently made, it added, and positive conversations have been had with a number of US-based executives.
Bidstack said it expects to make a further announced after today’s market close, following the result of the REX Retail offer.
--UPDATED to add result of placing--