(Sharecast News) - Mobile content and data company Mobile Streams announced on Tuesday that it has raised £1.2m before expenses, to create a new joint venture with Gfinity.
The AIM-traded firm said the funds were raised through a placing of 400 million shares with investors at a price of 0.3p each - a 25% discount to its closing mid-market price on 14 March.
It said the joint venture would be focussed on Mobilegaming.com - the site through which it was focusing its gaming and esports offerings, aiming to better monetise the property using the combined resources of the two companies.
The company said it was working to agree the terms of the joint venture, expecting to announce the agreement "shortly".
In anticipation, Mobile Streams said it had agreed to subscribe for £0.25m in Gfinity's placing announced on 14 March.
To provide existing shareholders who did not participate in the placing with the opportunity to do so, the company said it had also granted a broker option to Peterhouse Capital to subscribe for an additional 33,333,333 new shares on the same terms as the placing, exercisable before 1700 GMT on 16 March.
"The funds raised in this placing will enable us to take advantage of significant revenue generating opportunities and help us grow the business at a faster rate," said chief executive officer Mark Epstein.
"We are delighted to have been able to act so quickly to not only secure this opportunity but also add significant funds to the business which will help us take up further deals as they present themselves.
"We are now extremely well-funded, and the business is in the strongest position it has been in for years."
At 1344 GMT, shares in Mobile Streams were down 20.51% at 0.31p.
Gfinity (GFIN)
Mobile Streams (MOS)