The company said it intends to use the net proceeds from this offering for working capital and to repay a portion of its outstanding senior convertible note
Esports Entertainment Group Inc has announced the pricing of an underwritten public offering of 15,000,000 shares of common stock and accompanying warrants to purchase 15,000,000 shares of common stock.
The gross proceeds of the offering are expected to be approximately $15.0 million before deducting underwriting discounts and commissions and estimated offering expenses.
The company said it intends to use the net proceeds from this offering for working capital and to repay a portion of its outstanding senior convertible note.
Each share of common stock is being sold together with one common warrant at a combined effective offering price of $1.00. The common warrants will be immediately exercisable at a price of $1.00 per share of common stock and will expire five years from the date of issuance.
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The shares of common stock and the accompanying common warrants can only be purchased together in the offering, but will be issued separately and will be immediately separable upon issuance.
Esports Entertainment has granted the underwriters a 45-day option to purchase up to an additional 2,250,000 shares of common stock and/or additional warrants to purchase up to 2,250,000 shares of common stock.
Maxim Group LLC and Joseph Gunnar & Co. LLC are acting as book-running managers for the offering.
The offering is expected to close on or about March 2, 2022, subject to customary closing conditions.
The offering is being made only by means of a written prospectus and prospectus supplement that will form a part of the registration statement. A final prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC.
Esports Entertainment is a full-stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations.
From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The company maintains offices in New Jersey, the UK and Malta.
Contact the author at jon.hopkins@proactiveinvestors.com
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