Gfinity shares slump 30% to placing price after £250,000 fundraise

Shares in Gfinity PLC (AIM:GFIN), the gaming and digital media company, fell 30% to 0.035p after it raised £250,000 through a discounted share subscription.

The placing was priced at 0.035p, a 30% discount to Monday's closing mid-market price of 0.05p.

The company will issue more than 714 million new shares, with the stock now trading down at the issue price.

Proceeds will fund the commercialisation of Connected IQ, its advertising technology platform, and provide general working capital.

Chief executive David Halley said the money would accelerate the rollout of Connected IQ, including agency business development, platform upgrades and white-label licensing partnerships.

The platform enhancements include an artificial intelligence media planning tool and a self-serve interface.

CMC Markets, trading as CMC CapX, acted as placing agent.

Gfinity said its digital media division had a steady quarter to 31 March, typically its weakest period.

The company has begun recognising revenue from Iris, its US data partner, with UK revenue expected from June.

Its Yentra.AI division has signed a memorandum of understanding with a UK university to pilot its product within the business school.