Australian tournament and media company Mogul has announced that it has raised A$3.1 million (£1.683m) through its latest, heavily oversubscribed share placement. The latest revenue raise comes as Mogul continues to attract interest from domestic and international investors.
The oversubscribed placement will see 310,000 fully paid ordinary shares purchased by sophisticated and institutional investors at A$1 (~£0.54) per share. Shares issued under the placement will rank equally with existing fully paid ordinary shares. Additionally, Mogul provided investors with a free attaching option for every two placement shares subscribed for and issued. These options will be exercisable at A$0.02 (~£0.01) on or before two years from their issue date.
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Mogul Managing Director, Gernot Abl was pleased to share the news and noted: “We are absolutely thrilled with the level and quality of investor interest in this Placement. This is a clear recognition of our business model, go-to-market strategy and the standard of our online esports tournament platform – Mogul.”
As part of the deal, Joint Lead Managers Veritas Securities Limited and Oracle Capital Pty Ltd will receive a 6% capital raising fee, and 10 million shares each. These shares will have the same attaching option as shares under the placement. Mogul’s share price on the Australian Securities Exchange (ASX) currently stands at A$0.013 (~£0.007). Settlement of the placement is expected to be finalised by close of trading May 23.
Proceeds from the transaction will be used to further support the rollout of their deal with Alliance, accelerate revenue-generating activities, as well as further international expansion and continued innovation of Mogul’s tournament platform.
Esports Insider says: With this deal, we will likely see a lot of resources poured into Mogul’s annual, European-based event series with Alliance. While the finer details of the joint events venture are yet to be announced, the deal indicates that amateur and semi-professional esports in Europe could potentially see an increase in organisation, production value, and quality of play considering there is money on the line.