- Esports Entertainment Group ( NASDAQ: GMBL ) stock is down 6.74% after-hours after the firm has entered into a securities purchase pact for the purchase and sale of 7.07M shares of the company's common stock and pre-funded warrants to purchase 17.85M shares of common stock at purchase price of $0.0937/share or per pre-funded warrant.
- Upon completion of the offering, the holder will own ~9.9% of the outstanding common stock of the company.
- Total gross proceeds from the offering to be ~$2.3M.
- The pre-funded warrants are exercisable immediately upon issuance.
- Concurrently, the company is also issuing 100 shares of series B mirroring preferred stock.
- The Series B preferred stock has voting rights on the reverse stock split proposal equal to 25M votes per share of Series B preferred stock.
- Each share of Series B preferred stock has a par value of $0.001/share and a stated value of $1,000 and will be automatically redeemed by the company upon stockholder approval of a reverse stock split of the company's shares of common stock.
- Offering is expected to close on December 21, 2022.
For further details see:
Esports Entertainment shares slide on pricing $2.3M securities offering and private placement