GameAccount Network reduces placing size to minimise dilution

GameAccount Network was working to appease existing shareholders on Thursday, revising the size of its placing downwards to minimise dilution of existing shares.

The AIM-traded firm announced on 21 March that it had raised gross proceeds of £3.1m through a placing of 11,069,326 new ordinary shares, at a placing price of 28p per share.

On Thursday, it said it had reviewed its ongoing working capital requirements and believed a reduced amount would be sufficient for its requirements and result in lower dilution for non-participating shareholder.s

As such, GameAccount Network’s board was adjusting the placing to a conditional raise of £1.6m gross proceeds, by way of issuing 9,331,888 placing shares at the same 28p price.

“The company plans to use the net proceeds from the Revised Placing in the same manner as previously indicated; to continue expansion of real-money Regulated Gaming and Simulated Gaming opportunities in the US and for working capital and general business development purposes,” the board said in a statement.

It confirmed application had been made for the placing shares to be admitted to trading, which was expected on 8 April 2016. The enlarged issued share capital will be 65,301,924 ordinary shares of 1p each.

GameAccount Network also confirmed that the placing was approved by shareholders at a general meeting held in the City on Thursday morning, with all proposed resolutions passed.