- PlaySide Studios (PLY) looks to raise $28 million to accelerate growth opportunities
- Through a $25 million placement and subsequent $3 million share purchase plan (SPP), PLY will offer shares to investors at 75 cents each
- The funds will go towards expanding IP titles to target wider audiences and opening new studios across Australia
- PLY is also planning to establish a dedicated research and development team to pursue Metaverse and blockchain opportunities
- Shares resumed trading today, increasing 1.1 per cent to 88 cents
PlaySide Studios (PLY) is looking to raise $28 million to accelerate growth opportunities.
The raise follows the company’s announcement earlier this week of a new contract with Take Two Interactive Software’s label 2K Games.
Through a $25 million placement and subsequent $3 million share purchase plan (SPP), PlaySide will offer shares to investors at 75 cents each.
The issue price is a 13.8 per cent discount to the last closing price of 87 cents on November 12.
PlaySide said it received strong commitments for the raise and significant demand exceeding the offer size.
In particular, the company said it received strong cornerstone support from leading institutions and broad support from both existing shareholders and a wide group of institutional investors.
With the funds, the video game developer plans to expand its investment in original IP titles with a particular focus on PC and Next Generation consoles.
Through this focus, PLY aims to deepen its portfolio across a range of platforms and genres to target a wider player audience.
Additionally, the cash will support new licence opportunities as the company looks to leverage its relationships with movie studios to launch new titles across different platforms.
PlaySide is also planning to scale its work-for-hire businesses as a strategy to become the developer of choice for publishers.
To assist the expected growth, the company is looking to open additional studios across Australia over the next year and a half.
The first new studio is planned for the Gold Coast, scheduled for the third quarter of 2022.
As global brands within the industry continue to invest into the online 3D virtual environment, Metaverse, PLY plans to direct part of the proceeds to establish a dedicated research and development team to pursue opportunities in this space.
The company said with Blockchain Gaming linked to Metaverse, it will also invest in software, integration APIs and optimised processes to ensure it is at the forefront of Blockchain Gaming globally.
The share placement will see more than 33 million shares issued and it is scheduled to settle on November 23.
Following this, the share placement will be conducted, giving eligible shareholders the opportunity to apply for up to $30,000 worth of new shares.
Company shares resumed trade today and were up by 1.1 per cent at 88 cents at 1:17pm AEDT.