Esports Entertainment Group announces pricing details for $8M offering

Esports Entertainment Group Inc has announced the pricing of its previously announced $8 million public offering. 

The company said it is offering 800,000 shares of its 10.0% Series A Cumulative Redeemable Convertible Preferred Stock, with a liquidation preference of $11 per share, at a purchase price of $10 per share for total gross proceeds of $8 million. 

In connection with the offering, the esports company has granted the underwriters a 45-day option to purchase an additional 120,000 shares of Series A Preferred Stock. 

Each share of Series A Preferred Stock is convertible into shares of the company’s stock, at a conversion price of $17.50 per share, at any time at the option of the holder.

READ: Esports Entertainment launches underwritten registered public offering of 1.5M shares of preferred stock

Subject to earlier conversion or redemption, the Series A Preferred Stock matures five years from the date of issue, at which point Esports must redeem the shares of Series A Preferred Stock still outstanding.

Dividends on the Series A Preferred Stock accrue daily, will be cumulative from the date of issuance, and will be payable monthly in arrears on the last day of each calendar month, at a rate of 10% per annum, which is equivalent to $1 per annum per share, according to a statement.

The company added that currently, no market exists for the Series A Preferred Stock. The Series A Preferred Stock has been approved for listing on the NASDAQ Capital Market under the symbol ‘GMBLP.” Trading of the Series A Preferred Stock is expected to begin within three business days after the initial issuance of the Series A Preferred Stock.

Maxim Group LLC and Joseph Gunnar & Co LLC are acting as book-running managers for the offering.

The offering is expected to close on or about November 16, 2021.

Headquartered in New Jersey and with offices in the UK and Malta, Esports Entertainment Group is a full-stack esports and online gambling company.

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Story by ProactiveInvestors