Research Report: Gfinity

Gfinity

Gfinity

Gfinity is the only independent and publicly quoted eSports company in Europe, describing itself as one of the world's leading eSports (electronic sports) companies. eSports is watching or playing competitive video gaming with the company noting that it enjoys strong relationships with game publishers, players and the wider eSports community and has built a strong reputation for delivering high quality competitions, both online and off-line and producing industry leading eSports broadcasts. The eSports sector is continuing to grow rapidly. Gfinity's recent newsflow has been positive but it represents a speculative investment opportunity and hence is not without risk given it needs to execute on its strategy going forward. On 12 May 2017, the company announced it had raised £6.25m (gross) in an oversubscribed placing at 20p with the net proceeds being used for additional working capital, launch of its Elite Series, develop proprietary software, invest in personnel and broadcast technology. Application will be made for the placing shares to be admitted to trading on AIM and it is expected that dealings in these new shares will commence on 17 May 2017. Gfinity also confirmed that current trading is in line with management expectations.