Business
NorthStar Enters into $10 Million Subscription Agreement with Playtech
Toronto, Ontario--(Newsfile Corp. - September 22, 2023) - NorthStar Gaming Holdings Inc. (TSXV: B...
About this update from Northstar Gaming Holdings Inc
[{"type":"text","content":"NorthStar Enters into $10 Million Subscription Agreement with PlaytechToronto, Ontario--(Newsfile Corp. - September 22, 2023) - NorthStar Gaming Holdings Inc. (TSXV: BET) (\"NorthStar\" or the \"Company\") today announced that, further to its press release dated August 24, 2023, it has entered into a subscription agreement dated September 21, 2023 (the \"Agreement\") with Playtech plc (\"Playtech\"), a global leader in gambling technology, and a supplier of software and services to, and an existing investor in, the Company, to purchase securities of the Company for an aggregate purchase price of $10 million. All dollar figures are quoted in Canadian dollars.The Agreement provides for the issuance of (i) 28,571,428 units (the \"Units\") at a price of $0.175 per Unit with each Unit comprised of one common share of the Company (a \"Common Share\"), and a half warrant to acquire Common Shares exercisable at $0.36 per full warrant and a further half warrant to acquire Common Shares exercisable at $0.40 per full warrant, in each case for a period of five years, and (ii) a three-year 8% unsecured convertible debenture (\"Convertible Debenture\") in the aggregate principal amount of $5 million 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 into the rest of Canada, following the Slapshot acquisition, and for general working capital purposes. Closing of the proposed financing is expected to occur by the end of October 2023. Closing of the Offering is conditional upon 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. In addition, it is expected that members of the Company's senior management and directors will, concurrently with the Offering, subscribe for up to 714,286 Units at a price of $0.175 per Unit for aggregate gross proceeds of up to $125,000, and a Convertible Debenture in the aggregate principal amount of up to $125,000 (the \"Management Subscription\"). The Company may also issue a further $250,000 in Units at a price of $0.175 per Unit and $250,0...