DFNN to raise $12.4 in private placement deal

Saturday 20th of May 2017

Philippine-listed DFNN has announced it plans to raise up to P624.4 million (US$12.4 million) through a private placement deal with UK-based Excel Century Investment Ltd., according to a company filing to the Philippine Stock Exchange.

The deal involves over 74.8 million common shares of DFNN at an issue price of P8.30 per share.

DFNN said it aims to use the raised capital to provide funds for general corporate purposes and funding requirements in relation to its business plans, including infrastructure expenses, and expansion of gaming systems and other platforms such as unified e-wallet subsystem, and security system for IT Platforms.

“This subscription signifies that the company is a viable investment which will increase the value of their respective interests in the company,” said DFNN in a statement.

Last week, DFNN reported a sharp rise in revenue and income for the first quarter of 2017, aided by the company’s increased gaming footprint and adoption of its technology platform.

The company reported consolidated revenue of P266.3 million in 17Q1, up from P58.0 million in 16Q1, while net income was P52.7 million, up from a loss of P9.3 million in the first quarter of 2016.

“By the end of the first quarter of this year, the acceptance and utilization of the company’s electronic games platform environment resulted in over 6,500 terminals running in more than 200 gaming outlets throughout the Philippines,” said the company in a statement.

DFNN CEO Ramon Garcia said he was pleased with the group’s first quarter results, and expects to sustain the current trajectory with the launch of its Sports Betting Exchange Gaming Platform.

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