Blue Star Capital raises £0.9m for esports investments

Technology-focussed investment company Blue Star Capital has conditionally placed 900 million new ordinary shares at a price of 0.1p each, it announced on Monday, to raise a total of £0.9m.

The AIM-traded firm said the net proceeds of the placing would be invested in certain esports opportunities.

It said the placing comprised two elements - the first being a firm Placing of 450 million placing shares at the placing price to raise £0.45m, conditional only on the completion of the first part of an investment agreement, and the admission to trading of those shares on AIM.

The second element was a conditional placing of 450 million shares at the placing price to raise £0.45m, conditional on the first placing having completed, certain resolutions being passed at a general meeting granting the directors authority to issue and allot the relevant shares and certain warrants to subscribe for ordinary shares, and the completion of the second part of the aforementioned investment agreement, as well as admission to trading of the placing shares.

“The company has entered into an investment agreement under the terms of which it will make investments of approximately £0.15m each in six esport companies,” the board said in its statement.

“The first part of the investment agreement, which will complete upon first admission, relates to an investment of approximately £0.45m in three esport companies.

“The second part of the investment agreement, which will complete upon second admission, relates to an investment of approximately £0.45m in three further esport companies.”

Blue Star said it anticipated that first admission would occur on or around 18 October, and that application would be made for second admission shortly after the general meeting.