ESE Entertainment Inc (CVE: ESE) (OTCQB:ENTEF) has closed its bought deal public offering for gross proceeds of $8,629,600, which includes the full exercise of the over-allotment option.
The company said the net proceeds will be used for business development, general working capital, and other general corporate purposes.
Under the offering, the company sold 6,164,000 units at $1.40 each. Each unit consists of one common share and one common share purchase warrant, entitling the holder to acquire one share at an exercise price of $1.95 apiece for a period of 24 months from the closing date.
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The expiry date of the warrants may be accelerated by the company if the volume-weighted average price of the shares on the exchange is greater than $2.925 for the preceding 10 consecutive trading days, at which time the company may accelerate the expiry date to a date that is at least 30 trading days following the date of such written notice.
Canaccord Genuity Corp acted as sole book-runner and lead underwriter on behalf of a syndicate of underwriters comprised of Roth Canada, ULC, Stifel Nicolaus Canada Inc, and PI Financial Corp.
Pursuant to an underwriting agreement, the underwriters agreed to purchase on a bought deal basis, an aggregate of 5,360,000 units at the issue price, for gross proceeds of $7,504,000. The company had granted the underwriters an over-allotment option to purchase up to an additional 804,000 units at the issue price. As a result, the underwriters added an additional gross proceeds of $1,125,600.
In connection with the offering, the company said it paid the underwriters a cash commission of $604,072 and issued an aggregate of 431,480 warrants. Each underwriters' warrant is exercisable to acquire one unit at any time before July 19, 2023. Additionally, the company issued 154,100 units to the lead underwriter as a corporate finance fee.
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.
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