Esports Entertainment Group Inc (OTCMKTS:GMBL) announced Wednesday that it has closed on a $1 million private placement.
Under the financing plan, the Malta-based online gambling company that focuses on sports wagering and 18-plus gaming, entered into securities purchase agreements with four accredited investors.
“This is another major milestone for our company,” CEO Grant Johnson said in a statement. “This financing will allow us to complete initiatives that have been announced over the past several months, as we look towards building our business and our brand in order to return shareholder value.”
In the final tranche, eSports issued the investors convertible promissory notes in the aggregate principal amount of $550,000 (including a 10% original issue discount) and warrants to purchase an aggregate of 916,667 shares of the company’s common stock, par value $0.001 per share.
The notes accrue interest at a rate of 5% per annum and are initially convertible into shares of the company’s common stock at a conversion price of $0.60 per share, subject to adjustment. The notes contain customary events of default and mature one year from the date of issuance.
Each investor was entitled to 100% warrant coverage and received the same number of warrants to purchase shares of common stock -- as is the number of shares of common stock initially issuable upon conversion of its note as of the date of issuance. The warrants are exercisable for a period of three years from the date of issuance at a price of $0.75 per share, subject to adjustment.
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