Blue Star Capital PLC shares rose on Monday after it announced that investee Dynasty Gaming & Media Pte Ltd recently completed a $3 million fundraise, and announced a potential merger with Googly Media Pte Ltd.
Shares in Blue Star Capital were up 7.8% at 0.097 pence in London around noon on Monday.
Crawley, England-based Blue Star, which invests in e-sports, gaming and blockchain companies, first invested in Dynasty in 2019 and has a 13% shareholding. It also has a 0.6% stake in Googly, a multi-gaming platform provider serving the ‘fast-growing’ market in India.
Blue Star said Dynasty raised the funds via a $3 million convertible loan, which should enable it to reach free cash flow generation breakeven by no later than July 2024. Blue Star invested $75,000 as part of the fundraise, and has the option to invest a further $75,000 in future.
Blue Star also said that having worked closely with Googly on opportunities in India over the last 12 months, Dynasty and Googly both ‘consider their prospects are best achieved through an equal merger.’ Dynasty expects to obtain shareholder approval before the end of the year, and both companies hope to extend their collaboration into other countries.
Blue Star explained that Dynasty is coming out of the woods after a period of extensive changes. The company decided to ‘pivot’ from its original plan, to provide its gaming platform to large telecoms companies, and instead focus on launching business to consumer platforms with ‘more strategically aligned’ partners due to ‘operational complexities’.
‘Like many early-stage businesses, Dynasty’s management have needed to adapt their business model as the opportunity and market conditions have evolved,’ commented Blue Star’s Executive Chair Tony Fabrizi. ‘We are fully supportive of the company’s recent decisions and believe Dynasty’s dual focus on building a highly scalable business in India, the fastest growing gaming market globally, as well as partnering with strategic partners in other regions will optimise the value of Dynasty’s tech platform.’
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