Esports company Gfinity (LON:GFIN) has secured a fundraising of up to £1.5m at 0.15p a share. The cash is required for Gfinity to push ahead with its strategy.
The cash should last for 12 months. Technology platform Athlos still requires a strategic partner and there is enough funding for this for around four months. If not, then it could affect the restructuring and other plans for the rest of the business.
Directors are subscribing for 26.7 million new shares. Each share comes with a warrant to subscribe for one share at 0.15p and these warrants are exercisable between six and 18 months after the placing shares are admitted to AIM.
At 0.22p, the current share capital values Gfinity at £2.9m. Last March, Gfinity raised £2.7m at 1.25p a share. These shares came with a warrant and the exercise price has been reduced to 0.15p until they expire on 4 April.
Management believes that Gfinity Digital Media can grow its audience to 15 million plus monthly active users in order to help it to achieve breakeven.