Conclusion of Strategic Review and Formal Sale Process

Gfinity announces the conclusion of its strategic review and Formal Sale Process announced on 09 October 2020.

Gfinity plc (AIM: GFIN), a world-leading esports and gaming solutions provider, today announces the conclusion of its strategic review (the “Strategic Review”) and Formal Sale Process (the “FSP”) announced on 09 October 2020.

The Strategic Review was launched to invite and initiate discussions with a broad range of possible partners, whilst the FSP mechanism was agreed upon as it enabled conversations to benefit from certain regulatory dispensations.

Throughout the process the Board has been focused on maximising shareholder value and has concluded that it is in shareholders’ best interests to focus on accelerating the growth of the business under its existing strategy.

The Board has been encouraged by the discussions held with a range of parties, which resulted in the signing of one of the Company’s largest ever multiyear commercial contracts with the sports fan engagement site IQONIQ. Further additional commercial opportunities that fit with the Company’s strategy are expected throughout 2021.

As set out in the interim financial results announced today, the Board’s strategy of focussing on higher value revenue and margin streams is delivering solid results in the first half of the financial year.

Revenue is up 212% compared to the six months immediately prior to 30 June 2020 at £3 million and adjusted operating loss is down 71% at £0.9m compared to the same period. Adjusted administrative expenses are down 36% on the six months immediately prior to 30 June 2020 at £2.5m, reflecting the significant cost reduction programme. In addition, the Company is well capitalised to continue to deliver on its objectives, with an increased cash position of £1.8m compared to £1.6m at the start of the period.

The Board is confident in the Company’s prospects for accelerated growth and believes that a solid platform has been built from which Gfinity can harness the continuing strong momentum within the business, develop new partnerships and deliver on the strong pipeline of opportunities.

With the conclusion of the Strategic Review as announced on 9 October 2020, the Company is no longer in an “offer period” as defined by the City Code on Takeovers and Mergers (the “Takeover Code”) and the disclosure requirements pursuant to Rule 8 of the Takeover Code are no longer applicable as from the time this announcement is released.

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