IMPERIUM TEC GP (ASX: 00776) has announced a proposed rights issue to raise capital.

The company plans to issue approximately 224 million new shares on the basis of one rights share for every two existing shares held, at a subscription price of HK$0.19 per share.

This initiative is expected to raise gross proceeds of up to about HK$42.55 million, assuming no change in the number of issued shares before the record date.

The rights issue will be open exclusively to eligible shareholders and will not be offered to those who are ineligible.

After deducting related expenses, the estimated net proceeds from the fundraising are approximately HK$40.55 million.

The company intends to allocate the net funds raised for several specific purposes.

Around HK$9.33 million is earmarked to support its online gaming business, which includes identifying publishers and securing licenses for new game releases.

Approximately HK$6.22 million will be used to bolster its esports operations, covering activities like event hosting to grow its fanbase and the design and production of related merchandise.

A sum of about HK$25 million is designated for the group's general working capital needs, covering items such as director remuneration, employee expenses, office lease payments, and other administrative costs of daily operations.

In a separate announcement, the board declared a change in the board lot size for trading the company's shares on the exchange.

The trading board lot will be adjusted from 500 shares to 5,000 shares, effective from 9:00 a.m. on July 15, 2026.

The company will also arrange an odd-lot matching service to facilitate the trading of these smaller, non-standard share quantities.