Perth-based telecommunications group Pentanet (ASX: 5GG) has received funding commitments almost equivalent to its January IPO, with a fresh capital injection set to bolster its network roll-out and cloud gaming ambitions.
The firm commitments to raise $20 million at $0.76 per share, representing a 5.3 per cent discount to the last traded share price, follow last week's launch of a gaming service that taps into the cloud to offer the processing power of a high-end gaming PC on just about any modern device.
The launch of GeForce NOW Powered by Pentanet coincided with the company revealing the beta version of its own CloudGG portal, which it describes as a "complete gaming experience" with 50,000 quests completed by users within its first week of launch.
Since listing on the ASX earlier this year, the company led and founded by Stephen Cornish has also grown its subscriber base by 20 per cent with low churn rates and acquired a 15-year licence for high band 5G spectrum in an Australian Communications and Media Authority (ACMA) auction.
It is an investment Pentanet believes will lead to significant advantages for the network and an accelerated deployment of Terragraph technology in Pentanet's 'Project Gigalink'.
"It is good to see the strong support from investors, highlighting an increased level of understanding around the relationship between cloud gaming and 5G, now enabling us to move Pentanet into the next stage of growth early," managing director Stephen Cornish says.
"It is a fast-developing market and we have taken advantage of market opportunities in both our Fixed Wireless and our Cloud Gaming services to strengthen our capabilities.
"Our team will continue to show that we are leaders in these developing services, and the highest tier when it comes to providing subscribers with industry leading internet performance and delivering on what will be Australia's best and most anticipated high-quality cloud gaming service."
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