Gfinity PLC (LON:GFIN) shares surged on Friday as the esports media group said it has launched a formal sales process to explore a number of options as part of a strategic review to “continue on its current pathway towards profitability” targeted for the first quarter of the 2021 calendar year.
In a progress update, the esports company said it “remains highly confident” in its prospects and that market trends meant it has the opportunity to “significantly expand its growth projections”.
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Gfinity added that following “considerable corporate and strategic development” over the year to June 30, 2020, as well as a successful fundraising the group is on a firm financial footing and “well positioned to drive significant future revenue growth” across its core business areas of digital media, partnerships and esports solutions for brands.
"The board of Gfinity remains highly confident in the prospects and position of the company, especially as market dynamics are rapidly, and permanently, changing in favour of the group's offering … Given this, while the board believes that the company can continue on its current pathway towards profitability it believes, at this point in time, that it is important to all its stakeholders to ensure that it has explored all strategic options to capitalise on the potential market opportunity and to deliver shareholder value, including options for making acquisitions, forming partnerships, separating the activities of the Group or a potential sale of the company”, the group said in a statement.
While it has commenced a formal sales process, Gfinity said it is not currently in discussions and has not received approaches from any potential offerors.
The news sent Gfinity shares up 21.2% to 4.1p in early trading.