Business
Enthusiast Gaming Inc. Announces Closing of Oversubscribed Subscription Receipt Financing
Toronto, Ontario--(Newsfile Corp. - June 19, 2018) - Further to the press releases dated Janua...
About this update from Enthusiast Gaming Holdings Inc
[{"type":"text","content":"Enthusiast Gaming Inc. Announces Closing of Oversubscribed Subscription Receipt FinancingToronto, Ontario--(Newsfile Corp. - June 19, 2018) - Further to the press releases dated January 3, 2018 and June 11, 2018, Enthusiast Gaming Inc. (\"Enthusiast\" or the \"Company\") and Tova Ventures II Inc. (TSXV: TOVA.P) (\"Tova\") are pleased to announce that Enthusiast has completed its private placement offering of subscription receipts (\"Subscription Receipts\") co-led by Haywood Securities Inc. and Canaccord Genuity Corp. (the \"Lead Agents\") and including Interward Asset Management Ltd. and PowerOne Capital Markets Limited (collectively, with the Lead Agents, the \"Agents\") for gross proceeds of $7,736,625 (the \"Brokered Financing\"). Concurrently with the Brokered Financing, Enthusiast completed a non-brokered offering of Subscription Receipts for gross proceeds of $762,500 (the \"Non-Brokered Financing\" and together with the Brokered Financing, the \"Offering\") resulting in the aggregate gross proceeds of the Offering being $8,499,125. The Offering was completed in connection with the proposed business combination (the \"Transaction\") between Enthusiast and Tova previously announced in press releases of Tova dated January 3, 2018 and June 11, 2018, which transaction is intended to constitute Tova's \"Qualifying Transaction\" pursuant to Policy 2.4 of the TSX Venture Exchange (the \"Exchange\"). The OfferingUnder the terms of the Brokered Financing and pursuant to an agency agreement dated the date hereof between Tova, Enthusiast and the Agents, Enthusiast issued 6,799,300 Subscription Receipts at a price of $1.25 per Subscription Receipt (the \"Offering Price\") for gross proceeds of $7,736,625. Concurrently, Enthusiast completed the Non-Brokered Financing of Subscription Receipts on the same terms as the Brokered Financing by issuing 610,000 Subscription Receipts at the Offering Price for gross proceeds of $762,500.The proceeds of the Brokered Financing, together with funds raised in the Non-Brokered Financing, will be used for general corporate and working capital purposes and to fund acquisitions of online digital properties similar to those already in Enthusiast's portfolio. The Offering is a condition precedent to the Transaction.Each Subscription Receipt entitles the holder thereof to receive, upon satisfaction of the...