eSports group Emerge Gaming anticipates being back trading on the ASX in mid-February after the recent revoking of an interim stop order by ASIC over its prospectus to raise $5 million.
In June last year, Arrowhead Resources (ASX:AR1) announced the acquisition of Gaming Battle Ground (GBG), an online gaming platform that facilitates skill based competitions in eSports, including peer-to-peer matches and tournaments.
Arrowhead shareholders approved the acquisition with the company to be renamed Emerge Gaming following acquisition.
However, the company received an interim stop order from ASIC in November over issues with the prospectus.
Earlier this week, the interim stop order with ASIC was revoked and Replacement Prospectus lodged with ASIC and ASX.
The company, which will have the ticker EM1, now expects to be reinstated on ASX on 22 February.
It is seeking to raise $5 million through the issue of 250 million shares at a 2c issue price with funds to go towards redesign and commercial expansion of the platform, business development, sales and marketing, operations and working capital.
“After extensive analysis by the Company’s executives and technical experts across mining, agri-business and technology related business opportunities, the eSports market was identified as a sector with potential for the Company to build shareholder value,” Emerge Gaming proposed non-executive chairman Bert Mondello said.
The GBG platform has been operating on a limited basis for the past 2 years, primarily in South Africa and Croatia.
It provides opportunities for gamers to be rewarded for skill based competitive gaming on PC, console and mobile.
It also provides a conduit for corporate advertisers to connect with the growing millennial gen-X gamers and a unique backend and automated design that supports a leveraged profitability through economies of scale.
The company will appoint Bert Mondello, Gregory Stevens and Jonathan Hart to the Board once the acquisition is finalised.
The new board and management team have a wealth of experience in the technology, eSports, corporate and finance sectors.
