X1 Esports and Entertainment Ltd. (CSE:XONE) has said the company's shares will begin trading today, June 30, 2022, on the Canadian Securities Exchange (CSE) under the stock ticker symbol XONE.
The gaming and media portfolio company has completed an initial public offering of 6,914,820 units at a price of $0.45 each for aggregate gross proceeds of $3,111,669. Each unit consisted of one common share and one common share purchase warrant, which is exercisable for two years to purchase an additional common share at a price of $0.70.
"We could not be more proud of our organization in reaching this milestone of listing on the Canadian Securities Exchange," said X1 Esports CEO Mark Elfenbein in a statement. "In addition to our existing assets, there is a great opportunity to acquire companies within the games and creator economy markets that we believe can benefit tremendously from being a part of the X1 ecosystem."
A cash commission of $140,854 was paid to the company's agent, Research Capital Corporation, as well as a corporate finance fee of $30,000, which was paid through the issuance of 66,667 units, plus applicable taxes paid in cash, the company said. It noted that the agent and its selling group members received 313,007 non-transferable agent's options to acquire up to 313,007 common shares at a price of $0.70 each until June 29, 2024.
X1 Esports said in its offer for sale prospectus that proceeds from the offering will be used for content development, sales and marketing, player/team acquisitions and other general and working capital expenses.
The company owns and operates a growing esports franchise, RixGG. Its business is the competitive playing of video games by teams for cash prizes, and operations ancillary to the competitions such as merchandising and the hosting of tournaments.
Shares were trading around $0.45 in Canada on Thursday afternoon.
--Updates with share price--
Contact the author at jon.hopkins@proactiveinvestors.com