The Playside Studios Ltd (ASX: PLY) share price is soaring today after an update on a successful share purchase placement.
At the time of writing, Playside shares are trading up 1.8% at 85 cents after hitting an intraday high of 87 cents around noon.
Playside is Australia's largest public listed video games developer working on entertainment for mobile, PC, virtual reality and augmented reality.
What is Playside up to?
In today's release, Playside informed investors it had received an overwhelming response to its share purchase plan.
The offer was oversubscribed, with the company receiving $12.97 million. Eligible shareholders had been invited to buy shares for 75 cents up to a maximum of $30,000 per shareholder with a total cap of $3 million.
The directors have now conducted a scale-back of the shares, meaning investors will receive a refund on some shares purchased.
The company said it would use the funds for a new studio on the Gold Coast, research and development, intellectual property and licensing fees.
This follows Playside's announcement yesterday of a significant new deal with Shiba Inu Games, and a string of deals with influential international players including a partnership with US-based One True King.
Commenting on the share purchase plan, Playside CEO Gerry Sakkas said:
We are very pleased with the applications received under the share purchase plan and would like to thank our existing shareholders for their ongoing support.
Playside share price snap shot
In the past 12 months, the Playside share price has surged more than 174%. The company's share price reached a 52-week high of $1.03 in November. The yearly low was 26 cents in December last year.
Playside commands a market capitalisation of roughly $11 million at the time of writing.
