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(Alliance News) - Blue Star Capital PLC said Monday it plans to raise up to GBP900,000 through a placing, which will be used for investment into several esports companies.
Blue Star also proposed the appointment of Derek Lew as chair, subject to regulatory due diligence. Lew is currently president & chief executive officer of venture capital fund manager GrowthWorks Capital Ltd,
The investment firm will issue 900.0 million shares at a price of 0.1 pence per share, through a placing carried out by broker Smaller Co Capital Ltd.
The placing is structured in two elements, the first being a firm placing of 450.0 million shares. The second is a conditional placing for the remaining 450 million shares, which is subject to shareholder approval
Shares in Blue Star Capital were up 5.3% at 0.079 pence on Monday morning.
The company has entered into an agreement in which it will make an investment into six esports companies.
Blue Star will pick up an 11% stake in The Lords Esports PLC and Googly Esports PLC, by investing GBP150,000 into each company.
Through a convertible loan of USD185,000, the company will take on a 14% interest in The Dibs Esports Corp.
These three investments are conditional on the firm placing being completed. The other three investments will be funded through the conditional placing.
These consist of a 14% stake in Dynasty Esports Pte Ltd for SGD255,000, or GBP148,103; a 13% interest in The Cubs Esports Pty Ltd for AUD250,000, about GBP134,477; and a 13% holding in The Drops Esports Inc for CAD250,000, or GBP150,561.
"We have been watching the development of the esports sector of gaming closely and the rate of growth in popularity and, importantly, associated revenue being generated presents a significant investment opportunity. We are investing at an early stage and not restricting our focus to a particular region or jurisdiction as we consider this to be the best opportunity to capture value for all shareholders," said Chief Executive Officer Tony Fabrizi.
Following the first placing, Blue Star Capital will have 2.69 billion shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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