News

Gfinity Raises £450,000 Through Discounted Subscription

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4.9

Andrew R. Michaud

• August 13, 2023

Gfinity, the London-listed esports company, has announced that it has conditionally raised £450,000 ($573,750) through a discounted subscription. The proceeds from this funding will be used for immediate working capital.

Share Price Decline

Following this news, Gfinity shares fell by 33%, or 0.04 pence, to 0.08 pence at 1031 GMT. The subscription was offered at a price of 0.06 pence per share, which represents a 50% discount to the previous day's closing price of 0.12 pence per share.

Shareholder Approval Required

It is important to note that the subscription is subject to approval by the shareholders at a general meeting. If the resolutions fail to pass, the directors will need to urgently explore alternative sources of funding, which may include selling its subsidiary.

Share Capital Reorganisation

To address the issue of the subscription price being lower than the shares' nominal value, Gfinity will undertake a share capital reorganisation. This reorganisation will involve each existing share being subdivided into one new share of 0.01 pence each and one deferred share of 0.09 pence each.

Leadership Changes

Gfinity also announced the appointment of David Halley as the new Chief Executive, replacing Neville Upton, who will return to his previous role as Nonexecutive Chairman. Halley brings with him over 25 years of experience in banking, hedge funds, and insurance, with expertise in risk management and trading.

Additionally, Chief Finance and Operating Officer Jonathan Hall will step down from his role with immediate effect.

Overall, this funding and leadership transition seek to support Gfinity's future growth and operational needs.