iCandy Interactive (ASX:ICI) raises $1.25M in heavily oversubscribed placement

• Mobile gaming company iCandy Interactive (ICI) has completed its $1.25 million capital raise
• 62.5 million new fully paid ordinary shares were issued to sophisticated investors and existing shareholders at two cents per share
• The placement was heavily oversubscribed – receiving more than $5 million in bids
• The gaming stock initially planned to raise $1 million, the market’s positive response caused iCandy to increase the placement by 25 per cent
• iCandy will use the money to expand its mobile gaming and esports business as well as new marketing initiatives across Australia and Asia
• Company shares have risen almost 30 per cent to trade for 3.1 cents

Mobile gaming company iCandy Interactive (ICI) has completed its $1.25 million capital raise.

The company locked up its shares on Friday, September 11 in preparation for the placement.

62.5 million new fully paid ordinary shares were issued to sophisticated investors and existing shareholders at two cents per share.

Specifically, existing shareholders who participated in the placement include Baidu which is a top-three internet company in China, Incubate Fund which is one of Japan’s leading early-stage VC fund, Animoca Brands and GMGC.

The placement received immense support, bringing in more than $5 million in bids. While the gaming stock initially planned to raise $1 million, the market’s positive response sparked a decision to increase the placement by 25 per cent.

“We are extremely pleased with the overwhelming response for the placement. This demonstrates that there is huge confidence in iCandy leading into the launch of our next suite of games,” Chairman Kin Wai Lau said.

Investors will receive one free-attaching option for every one placement share subscribed for. The options have an exercise price of 2.5 cents and will expire on December 31 2022.

Peak Asset Management, a Melbourne-based boutique investment firm, acted as lead manager to the placement. Peak will receive six per cent of the money raised as well as eight million unlisted options. However, this is subject to shareholder approval, which will be sought at an extraordinary general meeting.

“With the fresh capital, iCandy is now better positioned to expand our mobile gaming and esports business and drive new marketing initiatives in Australia and Asia,” Kin concluded.

Company shares have risen almost 30 per cent to trade for 3.1 cents at 11:27 am AEST.