Nektan has announced that it has received commitments from new and existing investors to collect up to £2.93 million (€3.8 million/$4.2 million) in additional funds.
In a statement confirming the plans, the mobile gaming content developer and platform provider said the fundraising will mainly be made up of the subscription for £2.56 million new convertible loan notes (CLN) by existing CLN holders and new investors.
The fundraising also features a firm subscription with an institutional investor for 358,024 new ordinary shares at an issue price of 81 pence per share, raising approximately £290,000, while the board intends to offer up to £300,000 of CLN unites for subscription by qualifying shareholders.
Nektan noted that the subscriptions and the offer are subject to the approval of shareholders and will be discussed at an Extraordinary General Meeting on or around March 29.
Jim Wilkinson, chairman of Nektan, said: “We welcome the continued support of our major shareholders and convertible loan note holders.
“We have continued to make good progress on achieving cost efficiencies in the business and this fundraising puts in place additional working capital to support the strong growth we are seeing in Europe and in our US JV.”