Gfinity PLC shares were down on Tuesday, after it said it has raised £2 million in an upsized equity placing and subscription.

On Monday, the London-based e-sports and gaming services firm said it plans to raise £1.5 million through a share placing and direct subscription at a price of 0.15 pence per share.

The placing price represented a 36% discount to the previous closing share price of 0.235 pence per share on Friday.

Shares in Gfinity were down 27% to 0.16 pence each in London on Tuesday morning. The company has a £2.0 million market capitalisation.

On Tuesday, it said it had raised £2 million in total.

Gfinity will issue 907.2 million new shares for the placing and 426.2 million shares for the subscription. In total, 1.33 billion new shares will be issued as part of the fundraise.

The company will use the proceeds for working capital purposes.

Gfinity said it will hold a general meeting of shareholders on March 6 to vote on the fund raise, which is conditional on their approval.

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