23rd Aug 2021 18:02
Gfinity PLC - London-based e-sports and gaming - Unveils proposed acquisition of Megit Ltd, which owns and operates the website Stock Informer, for an initial consideration of GBP5.0 million. Of this, GBP2.5 million will be paid in Gfinity shares and the other GBP2.5 million in cash. "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," says Gfinity Chief Executive John Clarke.
In order to fund the cash element, Gfinity plans fundraise of at least GBP3.0 million, with the proceeds put towards the Stock Informer deal and the remaining GBP500,000 to be used for expansion of Gfinity's social activities and US site operations. Fundraise - a placing and direct subscription - to be priced at 4.0 pence per share, being a discount of 1.2% to Friday's closing price. Also launches retail offer at same price via PrimaryBid. "Funds raised via PrimaryBid Offer will be used to invest in the business and to drive further revenue growth," it says.
Current stock price: 4.1p
Year-to-date change: up 8.5%
By Lucy Heming;Â [email protected]
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