BRIEF: CMGE raises $3.8 million in share placement at 6% discount

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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