DJI to raise $38.5 million via conditional placing

China focused lottery and payment processing firm DJI Holdings on Friday announced a conditional placing of 30.5 million new ordinary shares, which will raise approximately GBP 29 million (US$38.5 million).

According to a press release, the funds raised will enable the company to “progress a number of major strategic opportunities under discussion, with the potential to develop significant new revenues and create substantial shareholder value.”

“In addition to strengthening our balance sheet, as a growing listed company we recognise the importance of high quality institutional investors in our shareholder base. We are therefore pleased to be securing additional funding from a number of such institutions, which we believe will enable the Group to conclude discussions for deals of major significance with some of China’s largest organisations, with the potential to enhance shareholder value substantially,” said Darren Mercer, chief executive officer of DJI Holdings.

On the same day, DJI announced its annual after-tax loss in 2015 widened to GBP 11.4 million, increased from a loss of GBP 3.6 million in 2014. The firm said Beijing’s suspension of online lottery sales in 2015 was to blame.