32 Red, a highly player-respected online casino and poker room, raised a significant amount of cash following a placement of almost 4 million ordinary shares (eight percent of its stock) with new institutional investors.

The online casino, which is owned by the Trafalgar group, will use the money raised to invest in the company’s future growth. In fact, the money has already been earmarked for marketing purposes intended to promote 32 Red’s future expansion. In addition to earmarking the money for marketing purposes, 32 Red will also be building up its future by continuing to consider acquisition possibilities within the online gaming industry.

Numis Securities, the company that brokered the deal, set the value of the new 32 Red shares at 140 pence each in order to raise the GBP 5.3 million. The placing of the shares involves the issue of 3 766 500 new ordinary shares - equivalent to around eight percent of the company's existing ordinary share capital. It is expected that the move will increase 32 Red’s liquidity and widen the company’s shareholder base.

Ed Ware, 32Red.com's Chief Executive Officer had the following to say about the Numis Securities deal: “It has been our intention since admission to AIM last September to widen the shareholder base and raise capital to invest in 32Red's future growth”. Ware further added: “We are delighted to have raised these funds, which will enable us to step up our focused marketing program and enhance 32Red's profile and brand recognition. The additional capital will also give us increased resources to pursue strategic acquisitions that we feel would be complementary to 32Red's existing offering".

Posted on: April 4, 2006

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