Chinese gaming entity Ourgame International Holdings Ltd has announced the completion of the issuance of HK$416 million of management subscription shares and connected subscription shares, the proceeds of which will be used to expand its World Poker Tour (WPT) and eSports interests as well as the expansion of its Chinese online gaming portfolio.
In a filing to the Hong Kong Stock Exchange, Ourgame said it has designated 89,189,189 Management Subscription Shares to Jian Ying Ourgame High Growth Investment Fund – lifting its stake from 14.35% to 20.58% – while Glassy Mind Holdings Limited has acquired 226,000,000 connected subscription shares to lift its stake from 24.48% to 26.99%.
The combined new shares represent 14.29% of the issued share capital of the company, with Ourgame stating that all shares “have been duly allotted and issued as fully paid to the new management subscriber entity and Glassy Mind Holdings Limited at the subscription price of HK$1.85 per subscription share.”
The company has previously stated that expenditure of the funds raised will include 30% to be used to further develop its eSports business, 30% to acquire and develop China regional card and board games platforms to enlarge the group’s China national games platform, 15% to further develop the World Poker Tour including its WPT online games platform and 15% to revamp and update the group’s China mobile product portfolio. The remaining 10% will be used to replenish Ourgame’s working capital.
Ourgame said the offering represents “a good opportunity to (i) raise a substantial amount of additional funds for the company; (ii) improve the financial positions and liquidity of the group; and (iii) provide the company with the financial flexibility necessary for the group’s business development and expansion.”
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