Digital Domain raises HK$309m via share deals led by Munsun VR Fund
Latest round of fundraising follows recent transactions with Citic and SB China Venture Capital
Digital Domain Holdings, operator of the world’s largest independent visual effects studio, has raised fresh investment to expand its virtual reality business under new deals worth HK$309 million.
The subscription price of 55 Hong Kong cents a share represented a discount of 6.78 per cent to the average closing price per share of 59 HK cents for the five consecutive trading days immediately preceding the date of their agreement.
In addition, Digital Domain agreed to place 380 million shares at the same price to undisclosed professional, institutional and other investors.
According to Digital Domain, net proceeds from those deals total HK$306.63 million. It will be applied to the firm’s media entertainment business and general working capital.
At the resumption of trading on Tuesday, Digital Domain’s shares tumbled 4.92 per cent to close at 58 HK cents. The company requested for a halt in trading on Monday pending its new subscription announcement.