TruFin PLC on Thursday said it proposes to raise around £8 million via a placing and open offer of new shares in the company, of which part of the net proceeds will be used to invest in video games subsidiary Playstack Ltd.
The London-based financial technology holding company for niche lenders and early payment providers said it wished to raise £7 million via a placing and up to £1 million via an open offer, via 12.3 million new shares, both at a price of 65 pence per share.
TruFin shares closed down 2.9% to 66.00 pence each in London on Thursday.
TruFin said the net proceeds will be used to invest in Playstack to secure the Mortal Shell franchise and provide working capital to the company.
This includes £4 million being reinvested in Playstack, alongside balance of the net proceeds to be used to provide additional working capital for the group and allow for incremental capital allocations to Oxygen and Satago based on return on investment expectations.
‘Following the critical acclaim and financial success of Mortal Shell, which launched in 2020 after three years in development, Playstack has maintained an excellent relationship with Cold Symmetry, the game’s developer. Together they have explored ways to develop and capitalise on the Mortal Shell franchise,’ TruFin said in a statement.
‘With two of the group’s subsidiaries having reached breakeven and Satago securing two FTSE 100 partners - Lloyds and Sage - the group is seeking to maximise Playstack’s value and market positioning as it explores Playstack’s strategic options.’
The placing is being conducted through an accelerated bookbuild process, TruFin said, which was launched immediately following the announcement.
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