Gfinity PLC, a leading esports and gaming solutions provider, has concluded the sale of its remaining stake in Athlos Game Technologies Limited to Tourbillon Group UK Limited for a sum of £260,000. This move comes after a series of restructuring initiatives by Tourbillon since their initial purchase of a stake in Athlos earlier in June.
The decision to offload the remaining shares of Athlos aligns with Gfinity's broader strategy to concentrate on digital media growth and financial stability. The Board of Gfinity, upon careful consideration, elected not to continue funding Athlos, which was reported to be loss-making and heavily reliant on shareholder contributions, exceeding £25,000 monthly.
The Independent Directors of Gfinity supported the transaction, deeming it fair for shareholders given Athlos' valuation at approximately £0.95 million. They weighed this against the potential dilution risks to Gfinity's stake if it had not been sold. Neville Upton, according to UK Market Abuse Regulations, played a key role in making this information public.
The sale proceeds are earmarked for Gfinity’s digital media ventures and to strengthen the company's working capital, which is part of a strategic plan to recover financially. However, coinciding with these corporate developments, Gfinity's share price experienced a significant dip of more than ten percent, dropping to 0.065p as of 1045 GMT on the day of the announcement.
This transaction marks the end of Gfinity's involvement with Athlos Game Technologies and represents a shift towards optimizing the company's portfolio to better suit its growth and financial objectives.
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