M&A
Esports Entertainment Group Strikes Dual Deal: Direct Offering & Settlement Agreement
In a strategic move, Esports Entertainment Group, Inc. (NASDAQ: GMBL) has unveiled a dual financial maneuver. The company has not only entered into a securities purchase agreement with a prominent institutional investor but also settled a pivotal agreement with a key stockholder.
The securities deal involves the sale of 1,000,000 shares of the company’s common stock, alongside pre-funded warrants for an additional 4,167,959 shares. Priced at a competitive USD 0.1935 per unit, this offering is set to conclude by 16 August 2023.
Parallelly, the company has addressed a delay in its registration statement filing by forging a settlement with the holder of its Series C and Series D Convertible Preferred Stock. This move will see the company issue an initial 10,000 shares at USD 0.10 each, with subsequent weekly settlements to cover outstanding Registration Rights Fees (RRA Fees).
A significant aspect of this settlement is the holder’s agreement to partially waive certain antidilution provisions, contingent upon the establishment of a mutually agreed conversion price.
CEO Alex Igelman commented on the dual deal, emphasizing its strategic importance:
“This capital infusion is a testament to our growth strategy in the iGaming and esports sectors. Our balance sheet has seen a robust transformation this year, and we’re bullish about our company’s trajectory.”
The total proceeds from the offering, before deductions, are pegged at USD 1,000,000. Notably, the company has bypassed placement agents, ensuring no additional fees.
All securities in this offering have been registered under the Securities and Exchange Commission’s Form S-3, effective since 5 February 2021. A detailed report on this offering will soon be available on Form 8-K.
About Esports Entertainment Group: A global frontrunner in esports and iGaming, Esports Entertainment Group has a footprint in over 800 global venues, including academic institutions. The company is poised to capitalize on the booming esports market and has ambitious plans for the e-simulator content sector.
Via Press Release
