Gamelancer Media Corp has announced a $10 million brokered private placement of units led by the Chretien-Desmarais family office to finance the growth of the digital media and production company’s over-the-top (OTT) and direct media ad business.
The Toronto-based company, which produces video content for brands, with broadcast on its own TikTok, Snapchat, and Instagram channels, revealed the offering of up to 100,000,000 units at a price of $0.10 per unit for total gross proceeds of up to $10 million, comprised of gross proceeds of up to $4 million after the listed issuer financing exemption available under National Instrument 45-106; and gross proceeds of up to $6 million following other available private placement exemptions and together with the LIFE offering.
Gamelancer has an offering document related to the LIFE offerings that can be accessed under the company's profile on sedar or here.
The offerings will be conducted by Echelon Capital Markets as lead agent and sole bookrunner, on behalf of a syndicate of agents on a best-efforts basis after an agency agreement in all Canadian provinces, other than Quebec.
"In 2022, the acquisition of Gamelancer Inc and creative design studio JoyBox Media, was a critical step in our strategy to develop a 'Walled Garden' approach to digital-channel ownership. Gamelancer generates media inventory by publishing organic videos daily on our channels, which people tune into watch,” Gamelancer CEO Jon Dwyer said in a statement.
“This creative + broadcast model on TikTok, Snap and Instagram allows us to simultaneously publish creative short-form video ads on our owned and operated channels, which some of the largest brands and agencies globally purchase. This financing allows the company to grow our OTT and direct media ad business, and further develop our partnerships therein."
Each unit will consist of one common share of the company and one share purchase warrant. Each warrant will entitle the holder to buy a share at a price of $0.15 per warrant share at any time on or before the date which is 36 months after the closing. The company said the units issued following the LIFE offering will not be subject to any hold periods. However, the units issued pursuant to the private placement will be subject to a four-month hold period under Canadian securities laws.
Gamelancer has granted the agents an option to arrange for the sale of up to an additional 15,000,000 units at the issue price for additional gross proceeds of up to $1,500,000. The agents' option may be exercised in whole or in part at any time up to 48 hours prior to the closing date.
Moreover, the company has agreed to pay the agents a cash commission. The offerings are scheduled to close concurrently on or around May 31, 2023.
Gamelancer produces and distributes content across its 54 owned-and-operated channels to over 39 million followers and subscribers, generating over 2 billion monthly video views. The company claims it is growing by over 1.5 million new followers monthly.
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