Gfinity (LON:GFIN) will require more cash in March so management wants to raise £1.5m via a share issue. That will finance a corporate restructuring, invest in Athlos and reach breakeven. The share price slumped by 0.1p to 0.25p a share.
Last March, the esports business raised £2.7m at 1.25p a share. That took the amount raised by Gfinity since joining AIM to more than £40m.
Since June 2022, cash has fallen from £2.1m to £400,00. Interim revenues are 26% higher and the operating loss doubled to £800,000, although it was an improvement on the second half of the previous financial year.
Chief executive John Clarke is leaving Gfinity and Neville Upton become executive chairman.
Athlos
Athlos is the brand for the technology platform that enables video games publishers to include competitive functionality in their games. Management believe that Athlos has first mover advantage.
AIM-quoted Gfinity is seeking outside investment to accelerate the growth of Athlos. This could lead to an uplift in the value of Gfinity’s own stake.