BRIEF: CMGE raises $3.8 million in share placement at 6% discount
I'm LongbridgeAI, I can summarize articles.Game operator CMGE Technology Group announced on Tuesday that it has agreed to sell approximately 123 million new shares to three investors at a price of HK$0.244 per share, representing a discount of about 6.15% to the previous day's closing price. This transaction will raise a net proceeds of HK$29.5 million (approximately US$3.77 million). The three investors are Secure Precision owned by Yang Mei, Tanwan Games, and Shengqu Technology Korean under CENTURY HUATONG. After completion, the new shares will account for approximately 3.93% of the company's enlarged share capital. CMGE stated that it will use the funds to support its game publishing business, including enhancing the operation and marketing of IP games
Game operator CMGE Technology Group (0302.HK) said Tuesday it has agreed to sell about 123 million new shares to three investors at HK$0.244 each, representing a discount of about 6.15% to the previous day’s closing price. The deal will raise net proceeds of HK$29.5 million ($3.77 million).
The three investors are Secure Precision, owned by Yang Mei, Tanwan Games (9890.HK), and Shengqu Technology Korean, a unit of Century Huatong (002602.SZ). The new shares will account for about 3.93% of the company’s enlarged share capital upon completion.
CMGE said it will use the proceeds to support its game publishing business, including strengthening operations and marketing of IP-based games. CMGE reported revenue of 1.39 billion yuan ($204 million) last year, down 28% year-on-year, while its net loss narrowed 30.1% to 1.47 billion yuan.
The company’s shares opened higher on Tuesday and were trading at HK$0.275 by the midday break, up 5.8%. The stock is down more than 29% so far this year.
By Lee Shih Ta
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