Prykhodov
Mobile Global Esports (NASDAQ:MGAM) stock tumbled in midday action Wednesday after it announced it had agreed to a $5M private placement of its stock with an unnamed institutional investor.
Shares of the India-focused esports company, also known as Mogo, opened at $2.36, rising to a high of $2.49 in early trading before slipping to a low of $2.14 mid-morning. The stock recently changed hands at $2.23, down 27% from Tuesday’s close, at approximately 11:30 a.m. ET.
Earlier Wednesday, Mogo said that it had agreed to issue and sell 1.9M shares and accompanying warrants to buy up to 1.9M shares at a combined price of $2.65 per share plus one warrant. The deal, which is slated to close on Sept. 23, is expected to generate gross proceeds of $5M. The warrants will have an exercise price of $2.90 per share.
Mogo stock rallied 27% on Tuesday to close at $3.06 in the wake of its quarterly earnings report, which was released Monday afternoon. The stock hit a 52-week low of $2.04 on Monday prior to the release of the report.
Mogo went public through a $6M initial public offering on July 29, with the company offering 1.5M shares priced at $4 per share. The stock has traded widely since its debut, hitting a 52-week high on Aug. 1 of $20.74.
For a more in-depth look at Mogo, check out SA contributor Daniel Jones’s “Mobile Global Esports: Tread Cautiously”.
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