Last checked at 
(Alliance News) - Gfinity PLC said Thursday it intends to raise GBP2.3 million through a placing of shares, which will go towards supporting further growth.
The esports services provider will issue 225.0 million shares at a price of 1.0 pence per share - reflecting a 33% discount on Wednesday's closing price of 1.5p - through two tranches.
The first tranches is for 56.8 million shares, and the second for 168.2 million shares. The second tranche of the placing is conditional on gaining shareholder approval at the general meeting scheduled for April 21.
Shares in Gfinity were 31% lower at 1.04 pence on Thursday in London.
Proceeds from the placing will provide general working capital, as Gfinity looks to focus on three core strategic areas: Motorsports, the group's Own Community franchise and building community for others.
The third area involves discussions with publishers and brands for building community portal for gamers to register and interact, as well as using Gfinity's online virtual tournament platform.
Should both tranches of the placing take place, Gfinity will have 704.6 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
