15th Jul 2020 19:04
(Alliance News) - Sumo Group PLC is hoping to raise GBP13.7 million - from existing and new institutional investors - through a placing at 180 pence per share, it said on Wednesday.
Shares in Sumo closed 4.7% higher in London on Wednesday at 200.00p each.
The video game creator said it will use the proceeds of the placing to "take advantage" of potential acquisition opportunities.
"Given the fragmented nature of the market and opportunities arising from the Covid-19 situation, the group continues to be focused on accelerating expansion through specifically targeted acquisitions," Sumo said.
Sumo noted certain non-executive directors intend to participate in the placing and subscribe for a value of about GBP70,000.
Zeus Capital and Investec Bank are acting as joint bookrunners.
The company reaffirmed that Covid-19 lockdown restrictions have boosted its underlying market.
As a result, Sumo's trading performance remains "comfortably" in line with full year market expectations. Sumo expects significant second-half weighting reflecting the timing of projects and increasing headcount.
"The group continues to be well positioned to benefit from further activity in the video games market and the placing will enable the group to execute on its acquisition strategy and maintain its robust balance sheet and liquidity position," Sumo added.
By Paul McGowan; [email protected]
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