Esports Entertainment Group Inc has launched an underwritten registered public offering of 1.5 million shares of preferred stock.
Under the scheme, the company said it is offering its 10% Series A Cumulative Redeemable Convertible Preferred Stock, par value $0.001 per share, for $10 each.
Each share of preferred stock will be convertible into shares of Esports’ stock at a conversion price of $17.50 apiece at any time at the option of the holder.
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In connection with this offering, the company said it expects to grant the underwriters a 45-day option to purchase an additional 225,000 shares of the preferred stock at the public offering price, less underwriting discounts and commissions.
Currently, Esports noted, no market exists for the Series A Preferred Stock.
The company has filed an application to list the preferred stock on the NASDAQ Capital Market under the symbol "GMBLP." If the application is approved, trading of the preferred stock is expected to begin within three business days after the initial issuance of the security.
Maxim Group LLC and Joseph Gunnar & Co LLC are acting as book-running managers for the offering.
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