Australian-based matchmaking and tournament platform Mogul has raised AU $8M (~£4.432M) in a significantly oversubscribed share placement.
The latest capital injection is expected to allow the company to continue operating fully funded for the next 24 months.
RELATED: Mogul adds Google, YouTube veteran Kate Vale to board
According to a release, financial support from the placement came from a mixture of new and existing shareholders, including AU $50,000 (~£27,701) investment from Mogul Chairman, Gernot Abl.
The company is expected to use the funds to continue developing its matchmaking and tournament platform, accelerate its monetisation and brand engagement strategies, further international partner engagement, expand partnerships with PC and Mobile gaming publishers.
RELATED: Microsoft partners with Mogul for Age of Empires II esports
Under the placement, Mogul will issue a total of 800 million shares valued at AU $0.01 per share distributed over two tranches. Perth-based stockbroker CPS Capital Group acted as Lead Manager and Broker to the raise.
Jason Peterson, Managing Director of CPS Capital, commented: “We’re excited to be the lead manager to Mogul’s $8 million placement. We’ve seen the significant progress the Mogul team have made this year and are excited to be part of their long term future.”
Abl stated that he’s “pleased to have received such significant support for this placement, raising a total of $8 million.” The chairman noted that “investor appetite was so significant that it well exceeded the Company’s placement capacity. We have made significant strides as a company over the course of the previous year. Securing Cameron Adams and Kate Vale as Directors of the Company and Michael Rubinelli as our CEO has been well recognised by the market.”
Esports Insider says: The latest raise is good news for Mogul, it can continue to expand its offering and continue operating. It is worth noting, however, a quick look at the company’s books shows low revenues generated relative to the millions of dollars in expenditures – particularly when it comes to salary. Last year the company generated just AU $86,911 (~£48,220) in revenue against an AU $5.92M (~£3.284M) net loss.