IDreamsky Secures $7.42 Mn Through Share Placement to Support AI Agent Development

According to the announcement, IDreamsky issued 187,856,000 new shares, generating approximately $7.42 million in gross proceeds. After placement expenses, the company expects to receive net proceeds of around $6.85 million.

Details of the Share Placement

The placement involved the issuance of 187,856,000 shares at a price of approximately $0.04 per share. The company stated that the placement price represented a discount to the previous trading day's closing price and the average closing price over the preceding five trading days.

Fuming Securities acted as the placing agent for the transaction.

The newly issued shares represent approximately 9.2% of IDreamsky's existing issued share capital and around 8.4% of its enlarged share capital following completion. The placement was conducted under a general mandate approved by the company's shareholders.

How IDreamsky Plans to Use the Funds

IDreamsky plans to allocate the net proceeds across several business priorities, including AI agent technology research, game development, gaming operations and marketing, as well as general corporate purposes.

A key focus is the development of AI agent technology and the exploration of new ways to combine artificial intelligence with gaming. The investment is expected to support the company's research activities and broader efforts to develop its gaming business.

The company has been exploring new formats that bring AI capabilities into gaming experiences. However, the announcement did not specify a detailed budget allocation for each planned use of the proceeds.

About IDreamsky Technology

IDreamsky Technology is a gaming company listed on the Hong Kong Stock Exchange under stock code 1119. The company focuses on game development, publishing and operations, with an emphasis on the long-term operation of premium gaming titles and the development of its own intellectual property.

Through this share placement, IDreamsky aims to strengthen its financial resources for AI research and gaming-related activities. The fundraising reflects the company's intention to explore opportunities at the intersection of artificial intelligence and the gaming industry.

Read Also - Origin Closes $20 Mn in Funding to Expand Construction Robotics Platform