Fortifai Raises $2.3M at 15.4% Discount, Issuing 209M New Shares
Fortifai Limited has successfully raised $2.3 million through an upsized share placement, aiming to bolster its AI Gaming Lab and technology partnerships. The capital injection will support ongoing operations and strategic growth initiatives.
- Additional Placement increased to $2.3 million
- Approximately 209 million new shares issued at $0.011 each
- Issue price at a 15.4% discount to 10-day VWAP
- Funds allocated to working capital, product development, and creditor payments
- Expansion of AI Gaming Lab and technology partnerships targeted
Fortifai’s Capital Raise – Context and Details
Fortifai Limited, formerly known as Mighty Kingdom Limited, has announced the successful completion of an upsized Additional Placement, raising $2.3 million before costs. This capital raise was approved by shareholders at an Extraordinary General Meeting held on 20 June 2025 and reflects strong support from both existing and new investors. The company will issue approximately 209 million new shares at an issue price of $0.011 per share, representing a discount of around 15.4% to the recent 10-day volume weighted average price (VWAP) on the ASX.
The Additional Placement was increased by about $300,000 from the initial target, with the extra shares issued under the company’s existing placement capacity. This strategic move not only strengthens Fortifai’s cash position but also signals investor confidence in the company’s growth trajectory within the AI gaming and technology sectors.
Strategic Use of Funds
The proceeds from this capital raising will be directed towards general working capital needs, including ongoing operational costs, product development, and the settlement of creditors and liabilities. Importantly, Fortifai plans to channel additional resources into expanding its AI Gaming Lab, a core component of its technology portfolio, as well as forging new technology partnerships and launching innovative programs.
This focus on growth and innovation aligns with Fortifai’s broader ambition to enhance efficiencies and scale its existing business capabilities. The fresh capital infusion is expected to provide the financial flexibility needed to pursue complementary technology projects that could further diversify and strengthen the company’s market position.
Capital Raising Partners and Terms
708 Capital Pty Ltd and Sandton Capital Advisory Pty Ltd acted as Joint Lead Managers for the placement. They will receive a 6% capital raising fee, payable partly in cash and partly through the issuance of 8 million new shares. These shares will also be issued under the company’s placement capacity, ensuring the transaction remains within regulatory limits.
The timetable for the placement is swift, with trading resuming immediately after the announcement, settlement scheduled for 26 June, and new shares expected to be quoted on the ASX by 30 June 2025. This rapid execution underscores Fortifai’s urgency in securing funds to capitalize on emerging opportunities in the AI and gaming technology space.
Looking Ahead
Fortifai’s successful capital raise marks a pivotal moment as it seeks to accelerate its development and commercialisation efforts. While the discount on the share price may raise questions about dilution and valuation, the company’s clear strategic intent to invest in its AI capabilities and technology partnerships suggests a forward-looking approach designed to unlock shareholder value over time.
Bottom Line?
Fortifai’s upsized placement sets the stage for accelerated AI innovation, but investors will watch closely for tangible progress.
Questions in the middle?
- How will the Additional Placement impact Fortifai’s share price and shareholder dilution?
- What specific milestones and timelines are planned for the AI Gaming Lab expansion?
- Which technology partnerships are in the pipeline, and how might they influence growth?
