Excel Century, a holding and investment company based in the British Virgin Islands, subscribed to over 74.8 million unissued shares of DFNN priced at P8.30 per share.
DFNN informed the local bourse it aims to use the raised capital to provide funds for general corporate purposes and funding requirements in relation to its business plans. Among these are infrastructure expenses, and expansion of gaming systems and other platforms such as unified e-wallet subsystem, and security system for IT Platforms, among others.
Founded in 1999, DFNN is a listed IT solutions provider and systems integrator in the Philippines. The company is now also an active provider of gaming technology solutions in the country.
“While this subscription will dilute their percentage of ownership, the principal shareholders will welcome the entry of the subscriber who will infuse additional capital for the company’s business expansion plans,” DFNN said in its statement. “This subscription signifies that the company is a viable investment which will increase the value of their respective interests in the company.”
Tagged as an isolated transaction, the private placement deal qualified as an exempt transaction from the registration of securities with the Securities and Exchange Commission.
DFNN listed its work program of the application of proceeds, such as the build out and fit out of DFNN Technology Center and Studios (P150 million), Technology and Infrastructure Solutions (P120 million), gaming consultancy services (P90 million), marketing and promotions (P80 million), strategic investments P80 million, working capital P50 million, retirement of debts (P36.484 million), and fit out of DFNN Group new offices (P15 million).
DFNN posted a 672 per cent increase in net income for the first quarter of 2017. It had consolidated revenue of P266.32 million, up 359 per cent from the same period a year ago.
The company attributed the improvement to the expansion of its gaming footprint and increased adoption of its technology platform.
“We are very pleased with our first quarter groupwide results. We aim to sustain this trajectory through the next quarter as we launch our Sports Betting Exchange Gaming Platform,” said DFNN chief executive officer Ramon Garcia.
DFNN last traded at P8.88 per share on Friday (May 19).