Hong Kong-listed Ourgame International Holdings Ltd, the owner of the World Poker Tour (WPT), is aiming to raise approximately HKD416.5 million (US$53.4 million) via a share subscription.
The net proceeds will be used to expand the firm’s businesses, including HKD62 million “to further develop the WPT business in high-growth geographies where the group does not currently have a presence,” Ourgame said in a Thursday filing.
“The company expects to deploy approximately HKD25 million for geographic expansion including tournaments, marketing of WPT online games products and TV content development, with initial focus in Japan and South America, in particular Brazil, in 2018 and 2019,” said the Beijing-based company.
The WPT is to hold in November a tournament in Japan for the first time. The four-day event – organised in partnership with Japan Poker Union Corp – will be held in Tokyo, from November 23 to 26, 2017, the WPT announced in August.
In recent years, the WPT has been taking steps to increase its presence in Asia, after being acquired in 2015 by Ourgame.
In Thursday’s filing, Ourgame said it would invest approximately HKD37 million to develop further WPT online games and marketing, “including potential strategic partnerships with key global partners”.
The Hong Kong-listed firm said that about HKD125 million of the net proceeds would be used to build arenas for competitive video games, also known as e-sports, in the United States and mainland China.
“The company plans to build approximately four to six e-sports arenas in the U.S. and approximately two to four e-sports arenas in the People’s Republic of China in 2018 and early 2019,” said Ourgame.
It also intended “to build approximately two mobile e-sports arena trucks that are currently being used in Europe to be introduced to the U.S. in 2018,” the firm added.
Ourgame is currently developing – via a subsidiary – an e-sports venue at MGM Resorts International’s Luxor Hotel and Casino in Las Vegas, due to open in 2018. The company raised HKD120 million through the issuance of convertible notes in July to finance the construction of that venue.
The firm additionally said it plans to use part of the proceeds to expand its presence in mainland China’s board games platform business, revamp its mobile product portfolio and replenish working capital.
Feb 16, 2018Due to the Chinese New Year holiday, the GGRAsia team will be off between February 16 and 19. We will be back on February 20. We wish all our readers a prosperous Year of the Dog!
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