Business
Esports Entertainment Group Announces Closing of $2 Million Private Placement
Esports Entertainment Group Announces Closing of $2 Million Private Placement.
About this update from Esports Entertainment Group, Inc.
[{"type":"text","content":"ST. MARY'S, ANTIGUA / ACCESSWIRE / November 26, 2018 / Esports Entertainment Group, Inc. (OTCQB: GMBL) (or the "Company"), a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, is pleased to announce the closing, on October 18, 2018, of a private placement of Notes, which resulted in gross proceeds of $2.2 million, before deducting placement agents" fees and estimated offering expenses. The Company issued senior secured convertible promissory notes bearing interest at 5% per annum (the "Notes"). The Notes, with a principal value of $2,200,000, were purchased at a 10% discount for $2,000,000 and mature 12 months from the closing date. The holders of the Note would be entitled at any time after the requisite 144 holding period, to convert all or any amount of the principal face amount of the Notes then outstanding into common shares at a price of $0.60 per share. 100% warrant coverage would be exercisable for a period of 3 years post issuance at an exercise price of $0.75 per share. Grant Johnson, CEO of Esports Entertainment Group stated "This is a major milestone for our company. After announcing our engagement of Joseph Gunnar & CO and Dinosaur Financial Group as our exclusive investment bankers in July, we now have our first successful financing and I want to thank them for this great vote of confidence. This financing will allow us to significantly accelerate our growth plans, which have already seen us sign affiliate agreements with 176 esports teams in the last several months, and will see us embark on a campaign to further partner with influential esports groups. Our shareholders should be very excited about this and have much to look forward to in the coming weeks and months." Joseph Gunnar & Co., LLC acted as Placement Agent The securities offered and sold by the Company in the private placement were not registered under the Securities Act of 1933 or state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock, including shares of common stock issuab...