Blue Star Share News (BLU)

(Sharecast News) - Technology investment company Blue Star Capital has invested €0.125m (£0.12m) in Formation Esports, it announced on Wednesday.

The AIM-traded firm said Formation was recently incorporated in France with the support of the 'Uniqorn' incubator-accelerator, to focus on esport opportunities within contact sports.

It said the purpose of the fundraise was to provide Formation with funds to launch a dedicated esports platform, aimed at providing contact sports clubs with revenue and sponsorship generating opportunities and increased exposure.

The board of Formation estimated that contact sports, most notably rugby, had a global fan base of more than three billion people, however had received little attention from the esports sector.

It was Formation;s intention to cover the "entire spectrum" of contact sports fans and clubs, and additionally to launch its own academy with physical workshops across France and Europe.

Among other initiatives, Blue Star said Formation was in the process of finalising a relationship with Betway Africa's virtual sports platform, and had built a platform to engage and convert those customers.

Under the terms of the investment, Blue Star subscribed for 12,500,000 new shares, representing a holding of 9.6% of Formation.

The company said it participated alongside other investors, and was provided with limited warranties and granted certain information and anti-dilution rights.

"We are pleased to invest in Formation esports, which continues our investment focus on esports," said chief executive officer Tony Fabrizi.

"As with our other esports investments, we have managed to secure a sizable stake in an early stage business where we see considerable potential.

"Our existing portfolio continues to make strong progress and we look forward to updating the market with further news as the year progresses."

At 0839 BST, shares in Blue Star Capital were up 1.19% at 0.21p.