B90 raises £2m as it completes Emwys acquisition

Gaming marketing and service provider B90 Holdings announced on Friday that it had successfully raised £2m before expenses.

The AIM-traded company said it achieved that by placing and subscribing 36,731,551 new shares for 5.44491p apiece.

It said the raised funds would be allocated for various purposes, with the majority focussed on expansion and investments.

B90 said £1.1m was set aside for investing in inorganic growth opportunities, offering a promising trajectory for the company's future endeavours.

A further £0.4m would be reinvested into B90's assets, ensuring the continuous enhancement and maintenance of the company's infrastructure and services.

The remaining £0.5m would be allocated for general working capital and covering the expenses associated with the fundraising event.

B90 noted the issue price represented a 10% discount compared to the five-day volume-weighted average price per share as of the close of business on 12 September.

The new fundraising shares would account for 8.4% of the company's expanded share capital.

B90 said the fundraising event was not underwritten, and the shares were issued under its current authorities.

In parallel with the fundraising, B90 took a strategic move regarding its existing convertible loan notes.

The firm said it had notified all the loan note holders about the conversion of £4.545m worth of loan notes.

That amount, combined with accrued interest of £0.18m, would be converted at the same issue price as the fundraising shares, leading to the release of 86,810,441 new shares.

With the conversion, the company affirmed that there would be no outstanding loan notes in the future.

“Further to its announcement on 12 July, the company today announces completion of the acquisition of Emwys,” B90 said in its statement.

“The balance consideration due to the vendor, Funko International, is being settled as to €1.25m in cash together with €1.6m in equity, which the parties had agreed to issue at the issue price, resulting in the vendor receiving 25,271,308 new shares.

“To date, the Emwys acquisition has performed positively in line with management's expectations, and the company will now progress full integration of the acquisition and looks forward to providing an update on recent trading along with the interim accounts for the six months ended 30 June, which it expects to announce on or around 29 September.”

At 1116 BST, shares in B90 Holdings were down 4.1% at 5.85p.

Reporting by Josh White for Sharecast.com.