Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) Inc said it has completed its previously announced non-brokered private placement of units for aggregate gross proceeds to the company of $10,491,334.
"With this capital injection secured and our business now gaining significant traction, Playgon is well-positioned to execute on our growth strategy, including adding more development and support resources, increased sales and marketing activity in strategic markets, adding more tables and building a new studio to support the growth we are experiencing. We continue to add and onboard additional operators to our iGaming platform," said Darcy Krogh, CEO of Playgon Games in a statement.
"I would like to thank both our many existing and new shareholders for supporting our vision. These are exciting times for Playgon, I look forward to keeping the market updated on developments over the coming weeks and months to enhance shareholder value," he added.
READ: Playgon Games says private placement of units to be further upsized for gross proceeds of up to $10.5M
As part of the offering, the company issued 34,971,112 units at a price of $0.30 per unit, which consisted in the issuance of 34,971,112 common shares of the company and 17,485,556 common share purchase warrants 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 offering.
The maturity date of the warrants will be subject to prior acceleration, 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.
The net proceeds received by the company from the 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.
Each common share and warrant issued (including the common shares underlying the warrants) will be subject to a hold period of four months plus one day following the closing of the offering.
As part of the offering, the company paid and/or issued finder's fees to certain registered brokers. Certain existing insiders of the company also participated in the offering by purchasing an aggregate of 3,832,666 units, representing approximately 11% of the total number of units issued as part of the offering.
The offering remains subject to the final approval of the TSX Venture Exchange.
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 their customers innovative iGaming software solutions. Its 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, the company'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