PlaySide levels up with $28m raise

Melbourne-based video game developer PlaySide (ASX: PLY) has today announced it is looking to raise $28 million - cash that will go toward making new original titles and license opportunities, as well as further scaling the company’s work-for-hire business model.

According to an ASX statement, the studio has received firm commitments from institutions and sophisticated investors to subscribe for a placement of 33.33 million fully paid ordinary shares to raise $25 million.

In addition, because the company received significant demand that exceeded the offer size, PlaySide has proposed to offer a share purchase plan to eligible shareholders in Australia and New Zealand to raise up to a further $3 million.

The company, which develops original titles like 'Age Of Darkness: Final Stand’ and licensed video games for brands including The Godfather and Jumanji, will raise the $28 million at a price of $0.75 per share, representing a 13.8 per cent discount to the last closing price on 12 November 2021.

“We see an opportunity to accelerate the implementation of our growth strategy, solidifying our position as Australia’s leading independent gaming developer,” PlaySide CEO Gerry Sakkas said.

“The recent agreement with 2K Games has recognised our capabilities and highlighted the opportunities to grow within our target market.

“We are in a position to scale our operations and team to cater for these planned investments.”

PlaySide says it will use the proceeds to invest in different areas of the business to accelerate growth opportunities, particularly on expanding its original IP titles, with a focus on PC and next generation consoles like the PlayStation 5 and the Xbox Series X.

It also intends on leveraging its relationships with global movie studios and other IP property rights holders to invest in additional license opportunities and launch new titles, as well as scaling its work-for-hire business further with select publishers to be the developer of choice for AAA titles across multiple genres and platforms.

PlaySide also announced it is investing in studio expansion over the next 18 months to cater for rising demand and growth by opening new studios in selected Australian states, commencing with a Gold Coast office in Q3 FY22.

With blockchain and metaverse the two trending topics in the world of tech right now, PlaySide has hinted at a foray into both spaces today too.

The company says as opportunities arise to merge virtual and real-life experiences, it will establish a dedicated R&D team to pursue opportunities in the space as they evolve.

PlaySide will also invest in software, integration APIs and optimised processes to ensure it is at the forefront of Blockchain gaming globally.

“I would like to take this opportunity to thank new and existing shareholders for their strong support," Sakkas said.

“PlaySide has always been at the forefront of gaming technology. The Company believes that NFT’s and Blockchain Gaming technology will help form the initial foundation for continuity in the Metaverse and plan to invest in these emerging technologies to drive that vision.”