Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) Inc, which delivers mobile live dealer technology to online gaming operators globally, said that spurred by investor demand it intends to further upsize its previously announced non-brokered private placement of units to raise up to $10.5 million.
The Vancouver, British Columbia-based company said the proposed offering will be used to help fund sales and marketing programs for global expansion, software engineering, product design, customer support and team leadership. It will also fund more dealers and support staff, new studio locations, US strategic initiatives including corporate licensing and certification, and general working capital and corporate purposes.
The company said the upsized proposed offering is expected to be for gross proceeds of up to $10.5 million through the sale of up to 35,000,000 units at a price of $0.30 per unit, increased from the previously announced intention to raise up to $9 million.
Each unit will be comprised of one share and one half of one share purchase warrant, with each whole warrant entitling the holder to acquire one common share at a price of $0.50 per share for a period of 24 months from the closing date of the proposed offering.
"With overwhelming demand from investors, we have elected to upsize our previously announced financing to further support our growth initiatives," said Darcy Krogh, CEO of Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) in a statement. "We are delighted with investor support and appreciate the vote of confidence in our team and our truly innovative mobile Live Dealer product."
The maturity date of the warrants will be subject to prior acceleration following closing of the proposed offering, at Playgon’s discretion, should its shares trade at a price of $1 per share or greater for a period of 20 consecutive trading days.
Each unit will be subject to a hold period of four months plus one day following the closing of the proposed offering.
The company intends to pay certain finder's fees to registered brokers in the form of cash or securities, or a combination of both, as permitted by the policies of the TSX Venture Exchange.
To accommodate the additional investor demand, the proposed offering is now expected to close on or about November 12, 2021.
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