Gfinity plc (AIM: GFIN), a world leading esports solutions provider, announces the proposed acquisition of Megit Limited, a private company which owns and operates the website Stock Informer, in both the UK and US (“Stock Informer” or the “Target”) for an initial consideration of £5.0 million, comprising £2.5 million in cash and £2.5 million in new Ordinary Shares in the Company.
The Company is seeking to undertake a placing and direct subscription of New Ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at a price of 4.0 pence per share (“Issue Price”) to raise no less than £3.0 million, before expenses (the “Fundraise”). The Fundraise proceeds will be used partly to fund the £2.5 million cash consideration for Stock Informer, with the remaining £0.5 million intended to be used for expansion of Gfinity’s social activities and US site operations.
In conjunction with the Fundraise, a retail offer of new Ordinary Shares at the Issue Price will be made by the Company via PrimaryBid (the “Retail Offer”) to provide retail investors with an opportunity to participate in the equity fundraise. A separate announcement will be made shortly after this Announcement regarding the Retail Offer and its terms. Funds raised via PrimaryBid will be used to invest in the business and to drive further revenue growth.
The Fundraise is being conducted by an accelerated book building process which will commence immediately following the publication of this Announcement in accordance with the terms and conditions set out in the Appendix.
The Issue Price represents a discount of 1.2 per cent. to the previous day closing share price of 4.05 pence per share on 20 August 2021.
The Fundraise is being conducted by Canaccord Genuity Limited (“Canaccord”) as Nominated Adviser, Sole Bookrunner and Broker (the “Bookrunner”).
The Fundraising and Acquisition are conditional, inter alia, upon the passing of the Resolutions at a General Meeting, Admission and the Placing Agreement not being terminated prior to Admission (and in any event no later than 30 September 2021).
Commenting on the Acquisition, John Clarke, Gfinity’s Chief Executive, said:
“Gfinity’s strategic focus is based on strengthening and growing ‘what we own’, in particular the Gfinity Digital Media group. The proposed acquisition of Stock Informer delivers this. It is a highly profitable ecommerce referral site for gamers and their lifestyles. Stock Informer will be embedded into the GDM division once the transaction completes. It is a transformational acquisition for the Company and highlights the ambition of the Directors to continue to drive profitable growth within the Group”.
