Shares in Gfinity (AIM:GFIN ) soared after it launched a formal sales process as part of a strategic review which it said will help it continue its current pathway towards profitability.
Shares in the esports media firm soared today after it told investors that it had made good progress across all core areas over the last year and that it believes it is well positioned to drive significant future revenue growth with profitability forecasted for Q1 2021.
Gfinity announced this morning that it has commenced the process to explore potential offers for the company as it sought strategic options to deliver shareholder value.
Commenting on the year ended 30 June 2020, Gfinity said considerable corporate and strategic development had left the Company ‘exceptionally well positioned’ over the year including a successful fundraising which has left the group on ‘a firm financial footing.’
Gfinity has seen three major progressions with regards to joint ventures and partnerships, including partnerships with BT Sport, ViacomCBS and Abu Dhabi Motorsport Management.
Shares in Gfinity have seen a gradual increase in the past two weeks from lows of 2.8p and opened this morning 23.88% higher at 4.15p following the announcement.
Gfinity said today that it remains highly confident in both its prospects and position, and that market trends will offer it opportunities to ‘significantly expand its growth projections’.
The group said it is on track to deliver target revenues for this financial year of around £2m.
‘While the Company continues on its current pathway towards profitability that it believes, at this point in time, that it is important to all its stakeholders to ensure that it has explored all strategic options to capitalise on the potential market opportunity,’ Gfinity told investors.
The Company added that this included options ‘for making acquisitions, forming partnerships, separating the activities of the Group or a potential sale of the Company.’
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