Mighty Kingdom to raise $6.2m to kickstart new strategy

Game developer Mighty Kingdom has announced a new managing director and a hugely dilutive capital raise as part of its strategy reset.

Mighty Kingdom makes mobile phone games.

Adelaide game developer Mighty Kingdom has announced a capital raise worth almost double the value of the entire firm and the appointment of a new chief executive.

The company has over the past few months been locked in a battle for control with major shareholder Shane Yeend, who tried to topple the board and install his own set of directors, including himself.

With that battle seemingly behind it, the company has told the ASX that its has appointed mobile game industry veteran David Yin as chief executive, to lead a new strategy. Mr Yin was most recently managing director of Storms Gaming Studio and also previously headed up business development for Google Play in the Asia Pacific region.

Former Activision Blizzard King APAC managing director Mark Aubrey will also join the board as will iCandy Interactive director Chris Whiteman.

Mighty Kingdom shares, which last traded at 0.8c, remain in a trading halt while the company finalises a $6.2m capital raising at a steeply discounted 0.3c per share.

“The refreshed team at Mighty Kingdom intends to establish the company as a sustainable gaming company within six months with a reputation for developing quality games and resetting the business for controlled expansion into higher-value gaming products,’’ the company told the ASX.

“Based on a two-phased approach, the company has conducted an operational review, and will be implementing a restructure with immediate effect.

“Moving forward, the focus for Mighty Kingdom will be to diversify away from the current reliance on work for hire contracts to reflect a more diversified mix of work for hire, joint game development and sole-risked initiatives.’’

Mighty Kingdom chair David Butorac said there was now the opportunity to “reset the company, fund it appropriately, and to execute a growth strategy aimed at delivering a return to all our loyal shareholders.

“Our methodical approach to the strategic review process allowed us to assess several funding options and deliver the best outcome for all shareholders. We have also been very deliberate about the amount of investment we are seeking to ensure we are appropriately funded to execute fully on the strategic plan.’’

Founder and former managing director Phil Mayes, who recently rejoined the board, will also step down as part of the restructure.

Mighty Kingdom listed at 30c in April 2021 after a $18m capital raise. The company lost $10.8m in its first year and $9.1m the following year, burdened by excessive staffing costs. The company is now aiming to be break-even by the first half of the 2025 financial year. Mighty Kingdom also intends to consolidate its share capital on a one for 15 basis.