GMBL - Esports Entertainment announces offering of common shares and warrants

• Esports Entertainment ( NASDAQ: GMBL ) has entered into a securities purchase agreement with its senior convertible note holders for the purchase and sale of 7,065,000 common shares and pre-funded warrants to purchase 17,850,000 common shares in a registered direct offering at $0.0937 per share or per pre-funded warrant for gross proceeds of ~$2.3M. The pre-funded warrants are exercisable immediately upon issuance.
• Upon completion of the offering, the holder will own approximately 9.9% of the outstanding common stock of the company.
• In a concurrent private placement, the Company is also issuing 100 shares of series B mirroring preferred stock.
• At the next annual meeting of stockholders, the Company will call for the approval of, among other things, a proposal to effect a reverse stock split of the Company's common stock without a corresponding reduction in the authorized shares of common stock.
• The offerings closed on December 21, 2022.
• The Company plans to increase liquidity and maintain compliance with the Nasdaq listing rules and the company anticipates raising additional funds in the near term either through a private placement or public offering of common stock.
• GMBL -5% premarket to $0.084
• Source: Press Release

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