Conclusion of Strategic Review

RNS Number : 7230T

Gfinity PLC

29 March 2021

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

29 March 2021

Gfinity plc

("Gfinity" or "the Company")

Conclusion of Strategic Review and Formal Sale Process

Gfinity plc (AIM: GFIN), a world-leading esports and gaming solutions provider, today announces the conclusion of its strategic review (the "Strategic Review") and Formal Sale Process (the "FSP") announced on 09 October 2020.

The Strategic Review was launched to invite and initiate discussions with a broad range of possible partners, whilst the FSP mechanism was agreed upon as it enabled conversations to benefit from certain regulatory dispensations.

Throughout the process the Board has been focused on maximising shareholder value and has concluded that it is in shareholders' best interests to focus on accelerating the growth of the business under its existing strategy.

The Board has been encouraged by the discussions held with a range of parties, which resulted in the signing of one of the Company's largest ever multiyear commercial contracts with the sports fan engagement site IQONIQ. Further additional commercial opportunities that fit with the Company's strategy are expected throughout 2021.

As set out in the interim financial results announced today, the Board's strategy of focussing on higher value revenue and margin streams is delivering solid results in the first half of the financial year. 

Revenue is up 212% compared to the six months immediately prior to 30 June 2020 at £3 million and adjusted operating loss is down 71% at £0.9m compared to the same period. Adjusted administrative expenses are down 36% on the six months immediately prior to 30 June 2020 at £2.5m, reflecting the significant cost reduction programme. In addition, the Company is well capitalised to continue to deliver on its objectives, with an increased cash position of £1.8m compared to £1.6m at the start of the period.  

The Board is confident in the Company's prospects for accelerated growth and believes that a solid platform has been built from which Gfinity can harness the continuing strong momentum within the business, develop new partnerships and deliver on the strong pipeline of opportunities. 

With the conclusion of the Strategic Review as announced on 9 October 2020, the Company is no longer in an "offer period" as defined by the City Code on Takeovers and Mergers (the "Takeover Code") and the disclosure requirements pursuant to Rule 8 of the Takeover Code are no longer applicable as from the time this announcement is released.

ENDS

Enquiries :

Gfinity plc John Clarke, CEO	www.gfinityplc.com Via Teneo
Investor relations	[e-mail]
Teneo  (Media)	[e-mail]
Anthony Di Natale / Camilla Cunningham	Tel: [phone]
finnCap Group (Financial Adviser)	Tel: [phone] Tel: [phone]
Henrik Persson / Marc Milmo / Kate Bannatyne / Teddy Whiley -     finnCap Corporate Finance
Chris Malcolm / Steph Frayne - Cavendish Corporate Finance
Canaccord Genuity Limited   (AIM Nominated Adviser & Broker)	Tel: [phone]
Bobbie Hilliam / Georgina McCooke

About Gfinity

Gfinity (AIM: GFIN) is a world leading esports business. Created by gamers for the world's 2.7 billion gamers, Gfinity has a unique understanding of this fast-growing global community.  It uses this expertise both to provide advisory services and to design, develop and deliver unparalleled experiences and winning strategies for game publishers, sports rights holders, commercial partners and media companies.

Gfinity connects its partners with the esports community in authentic and innovative ways. This consists of on ‑ and off-line competitions and industry ‑ leading content production. Relationships include EA SPORTS, Activision Blizzard, F1 Esports Series and the Forza Racing Championship.

Gfinity connects directly with tens of millions of gamers each month through its digital media group, Gfinity Digital Media.  Gfinity Digital Media includes websites such as: Gfinityesports, RealSport101 , StealthOptional, RacingGame.gg and Epicstream and their respective social channels.

All Gfinity services are underpinned by the Company's proprietary technology platform delivering a level playing field for all competitors and supporting scalable multi-format leagues, ladders and knockout competitions.

 

END

 

 

MSCUWVWRAWUOUAR