The share price of Gfinity (AIM: GFIN) soared by over 20 percent as the company effectively put itself up for sale following strategic progress.
In highlighting the progress that the esports solutions company has made as it looks to return to profitability during the end of Q1 2021, Gfinity now senses it is an opportune time for a sale.
With the gaming industry and wider technology sector commanding higher valuations, exploring the potential for sale seems like an opportune move.
It noted that while it feels it is on the road to profitability, it is in the best interests of shareholder values to explore a sale:
“The Board has concluded that such a review would benefit from taking advantage of the dispensations available from certain provisions of the City Code on Takeover & Mergers (“Code”) in commencing a “formal sales process” (as described in the Code) and has appointed finnCap Limited (“finnCap”) as its financial adviser with regard to this process. Gfinity is not currently in discussions with, or is in receipt of an approach from, any potential offeror as at the date of this announcement.”
Following the announcement, the share price of Gfin reached 4.37p in early trading.