Business
NorthStar Announces a Proposed Financing of at Least $10 Million
Toronto, Ontario--(Newsfile Corp. - August 24, 2023) - NorthStar Gaming Holdings Inc. (TSXV: BET)...
About this update from Northstar Gaming Holdings Inc
[{"type":"text","content":"NorthStar Announces a Proposed Financing of at Least $10 MillionToronto, Ontario--(Newsfile Corp. - August 24, 2023) - NorthStar Gaming Holdings Inc. (TSXV: BET) (\"NorthStar\" or the \"Company\") today announced a proposed financing of at least $10 million pursuant to a private placement. All dollar figures are quoted in Canadian dollars.Closing of the proposed financing is expected to occur by September 30, 2023. NorthStar intends to raise (i) at least $5.0 million through an issuance of units at a price of $0.175 per unit (each unit comprising one common share, and a half warrant to acquire Company common shares exercisable at $0.36 per full warrant and a further half warrant to acquire Company common shares exercisable at $0.40 per full warrant, in each case for a period of five years), and (ii) at least a further $5.0 million by way of a three-year 8% unsecured convertible debenture (\"Convertible Debenture\") converting into common shares at $0.20 per share with interest payable-in-kind (the \"Offering\"). Proceeds from the Offering will be utilized to fund NorthStar's expansion post the Slapshot acquisition and for general working capital purposes. Closing is conditional upon finalizing all contractual documentation and receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange (\"TSXV\"), shareholder approval pursuant to MI 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") and the policies of the TSXV, and satisfaction of other closing conditions. Playtech, a global leader in gambling technology, and a supplier of software and services to, and an existing investor in, the Company, intends to participate by investing $5.0 million in the unit offering and a further $5.0 million in the Convertible Debenture. In addition, members of the Company's senior management team intend to participate in the unit offering. Playtech's and management's participation in the Offering will be related party transactions as such term is defined in MI 61-101. The Offering is exempt from the valuation requirements of MI 61-101 pursuant to Section 5.5(b) of MI 61-101, but not from the minority shareholder approval requirements of MI 61-101. NorthStar will be seeking a waiver from its principal securities regulator and the TSXV from the requirement to hold a sha...