Super League Gaming (NASDAQ:SLGG) saw its share price almost halved after it revealed the details of a discounted and dilutive equity raise for expected profits of $2.2 million.
The Metaverse and eSports early mover said that it would issue 16.9 million shares and accompanying warrants for $0.13 – a discount of about 45% to Friday’s closing price of $0.24.
This marked a new low for the company, which debuted at US$11 per share, raising US$25 million and setting its valuation at just below $100 million.
The company said the proceeds from the offering, which is expected to close on August 23, 2023, would be used for working capital and general corporate purposes.
Super League Gaming (NASDAQ:SLGG) shares were down 44.6% at US$0.13 shortly after midday on Monday.
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