Esports Entertainment Group Inc has raised net proceeds of US$13.6 million after completing a previously-announced public offering of 15 million shares of common stock and accompanying warrants.
The company sold 15 million shares of common stock and warrants to purchase 15 million shares of common stock for a combined effective offering price of $1.00, with each common share accompanied by a warrant.
"The proceeds from this important offering allow us to build our working capital reserves and enable the company to repay a portion of its outstanding debt," said Grant Johnson, CEO of Esports Entertainment Group in a statement.
"Collectively, this will provide our company with a far firmer foundation which will allow us to take advantage of the growth potential provided by our newest esports products as well as our European-based iGaming and online sports betting businesses.
"In particular, we remain extremely bullish about the growing interest in our OMEGA solution and believe the debut of our LANDuel platform later this month will have a material impact on our financial performance in the coming quarters."
READ: Esports Entertainment announces pricing of underwritten public offering to raise gross proceeds of around $15.0 million
The warrants are immediately exercisable at $1.00 per share of common stock and expire five years from issue.
The shares of common stock and the accompanying common warrants were issued separately and are immediately separable.
Esports Entertainment is a full-stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations.
From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The company maintains offices in New Jersey, the UK and Malta.
Contact the author at giles@proactiveinvestors.com