The Fatfish Group Ltd (ASX: FFG) share price is up 6% in morning trade.
The ASX technology venture share came out of a 1 day trading halt this morning following the release of a fundraising update to the ASX.
We take a look at the details below.
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What did Fatfish announce to the ASX this morning?
Fatfish shares are moving higher after the company reported that RightBridge Ventures AB – one of its Swedish subsidiaries – has successfully raised SEK55 million (AU$8.4 million) in funding.
RightBridge is a subsidiary of Fatfish's Swedish subsidiary Abelco Investments Group AB.
The company said the funding round has a post-money valuation of $22.1 million.
Once the funding round is complete, Abelco will own approximately 53% of RightBridge, leaving Fatfish with a non-substantial stake of 0.6%.
At the same time, RightBridge is acquiring a 10.7% stake in Swedish-based Esports Pulze AB. The global esports platform operates epulze.com. According to the release, the platform has more than "400,000 registered users, hosted over 1,000,000 matches and held over 53,000 tournaments". The acquisition furthers RightBridge's business plan to become a leader in esports investment in the Scandinavian region.
Fatfish added that:
The funding round also implies the ability of a FFG's subsidiary to attract independent funding from third-party institutional investors, without being solely dependent on FFG for funding. In fact, all of FFG's major businesses have to date managed to secure significant third-party funding. This further validates FFG's business model and acumen as an international tech venture builder.
Fatfish share price snapshot
Over the past 12 months, Fatfish shares have soared a remarkable 1,200% higher, racing past the 33% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Fatfish share price is up 225%. At the current price of 13 cents per share, Fatfish has a market cap of $122 million.
