Gfinity plc (AIM: GFIN ) has conditionally raised £2.25m through an oversubscribed placing at 1p per share.  

GFINITY announced a strategic review of the business on 16 March 2020, and has taken significant steps to cut overheads whilst positioning the Company for profitable growth by focussing on clear areas of differentiation and the adoption of a flexible ‘variable cost’ operating model. 

Investor should note that of the funds raised, £1.68 million is conditional, inter alia, on the approval of shareholders at a general meeting of the Company to be held on 21 April 2020 (the "GM"). One of the resolutions is to provide authority to the Directors to issue and allot further new ordinary shares otherwise than on a pre-emptive basis. 

The placing represents approximately 32% of the issued share capital of the Company, as enlarged by the issue of the Placing Shares. Warrants over ordinary shares will be issued on the basis of one for every Placing Share, exercisable at the Issue Price for 18 months, conditional, inter alia, on the GM. 

Use of proceeds 
Net proceeds of the placing will provide capital to support the Company sharpens its strategic focus on three core areas of existing success and competitive strength:  

  1. Motorsports 
  2. Community 
  3. Franchises and building communities for others 

John Clarke, Chief Executive Officer of Gfinity, said: "This fundraising marks the final step of our strategic review process. The funds raised further strengthen our financial position following on from the previously announced sharpened strategic focus for the business and the significant reduction of our cost base. We now have a solid cash position to ensure that Gfinity can continue to capitalise on the exciting market opportunities we see ahead. I'm pleased that in this extremely challenging time our existing investors, as well as new investors, have shown their support for this fundraise, our strategy and our future." 

Shares in GFIN closed on the 1 April at 1.5p. 

A circular, containing information in relation to the Placing and convening the GM is expected to be sent to shareholders tomorrow and will be available on the Company's website tomorrow at www.gfinityplc.com.