ESE Entertainment Inc (CVE:ESE) announced it has obtained a short form prospectus receipt in each of the Canadian provinces, other than Quebec, in connection with its previously announced bought deal public offering of 5,360,000 company units, at a price of $1.40 per unit, for gross proceeds of $7,504,000.
The company said the net proceeds of the offering will be used for business development, general working capital, and other general corporate purposes.
Each unit in the offering will consist of one common share of the company and one common share purchase warrant, entitling the holder to acquire one common share at an exercise price of $1.95 per share for a period of 24 months from the offering closing date.
READ: ESE Entertainment inks agreement with Canaccord Genuity for 'bought deal' unit offering to raise aggregate gross proceeds of $7,504,000
Canaccord Genuity will act as sole bookrunner and lead underwriter on behalf of a syndicate of underwriters, which include Roth Canada, ULC, Stifel Nicolaus Canada Inc, and PI Financial Corp.
The company said it has granted the underwriters an over-allotment option to purchase up to an additional 804,000 units at the issue price, to cover over-allotments, if any, and for market stabilization purposes. The over-allotment option is exercisable at any time, in whole or in part, for a period of 30 days after and including the closing date, and, if exercised in full, would result in additional gross proceeds of $1,125,600.
The offering is expected to close on or about July 19, 2021.
ESE Entertainment is a Europe-based entertainment and technology company focused on gaming, particularly on esports, with ownership of multiple assets and world-class operators in the gaming and esports industries.
The company’s capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, sponsorship support, and a growing esports team franchise, K1CK Esports.
Contact Sean at sean@proactiveinvestors.com