Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) Inc has said that, further to its news release dated October 28, 2021, it intends to upsize its previously announced non-brokered private placement of units of the company to be for gross proceeds of up to $9 million up from the previously announced intention to raise up to $5 million.
Any net proceeds received by the company from the proposed offering are intended to be used to help fund sales and marketing programs for global expansion, additional software engineering, product design, customer support and team leadership, increase IT infrastructure, increase dealer staff and support staff, new studio locations, US strategic initiatives including corporate licensing and certification, and general working capital and corporate purposes.
The upsized proposed offering is expected is see the sale of up to 30,000,000 units at a price of $0.30 each. Each unit will be comprised of one common share of the company and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share at a price of $0.50 each for a period of 24 months from the closing date of the proposed offering.
READ: Playgon Games announces plans to raise up to $5M for major expansion push and product design
The maturity date of the warrants will be subject to prior acceleration following the closing of the offering, at the discretion of the company, should the common shares trade at a price of $1.00 per share or greater for a period of 20 consecutive trading days, the whole in accordance with the terms of the warrants.
Each unit (including the underlying securities) will be subject to a hold period of four months plus one day following the closing of the offering.
In connection with the offering, the company intends to pay certain finder's fees to certain registered brokers in the form of cash or securities, or a combination of both, as permitted by the policies of the Toronto Venture Exchange (TSXV), the whole as per the company's announcement on October 28, 2021.
The proposed offering is expected to close on or about November 9, 2021, and remains subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV and other customary closing conditions for transactions of this nature.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, US persons, except under an exemption from the registration requirements of those laws.
Playgon is a Software-as-a-Service (SaaS) technology company focused on developing and licensing digital content for the growing iGaming market. The company provides a multi-tenant gateway that allows online operators the ability to offer its customers innovative iGaming software solutions.
The company's current software platform includes Live Dealer Casino, E-Table games and Daily Fantasy Sports, which, through a seamless integration at the operator level, allows customer access without having to share or compromise any sensitive customer data. As a true business-to-business digital content provider, Polygon's products are ideal turn-key solutions for online casinos, sportsbook operators, land-based operators, media groups, and big database companies.
Contact the author at jon.hopkins@proactiveinvestors.com