(Alliance News) - Blue Star Capital PLC on Monday said it has raised GBP35,000 via a 29.2 million share subscription at 0.12 pence per share, part of which was invested in Guild Esports PLC in order to maintain a holding.
Blue Star explained that the purpose of its subscription has been to conduct follow-on investment, including in Guild - formerly known at Lords Esports PLC. Guild was one of a number of esports business investments announced in October and November.
Its prior investments include anti-dilution provisions and - subscription complete, Blue Star invested another GBP16,000 in Guild to maintain its 11.6% stake. The investment was priced at 1 pence per share.
Derek Lew, a Blue Star director, subscribed for 14.6 million of the company's subscription shares for GBP17,5000. He will hold 132.1 million shares in total as a result, a 3.96% stake.
Blue Star also commented on 1182533 BC Ltd, which trades as Leaf Digital Studios, noting its CDN100,000 investment announced April 17. The investment was equivalent to around GBP57,000 and was conditional on completion of Lead Digital's acquisition of Leaf Mobile Inc and readmission to the TXS Venture Exchange. This acquisition and admission has now occurred and shares are trading at a 50% premium to Blue Star's investment.
Tony Fabrizi, chief executive at Blue Star, said: "We continue to be encouraged by our investment in Guild, and believe it's in the company's best interests to exercise the anti-dilution option contained in our Guild investment agreement, and to maintain our percentage shareholding in Guild."
Shares in Blue Star ended 4.2% lower at 0.12p in London on Monday.
By Anna Farley; annafarley@alliancenews.com
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Blue Star (BLU)