Esports Entertainment Group Announces Closing of $2 Million Private Placement
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 issuable upon exercise of the warrants, to be issued in the private placement. Any resale of the Company”s securities under such resale registration statement will be made only by means of a prospectus.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About Esports Entertainment Group
Esports Entertainment Group Inc. is a licensed online gambling company with a specific focus on esports wagering and 18+ gaming. Esports Entertainment offers bet exchange style wagering and pool betting on esports events in a licensed, regulated and secure platform to the global esports audience at our website, vie.gg. In addition, Esports Entertainment intends to offer users from around the world the ability to participate in multi-player mobile and PC video game tournaments for cash prizes. Esports Entertainment is led by a team of industry professionals and technical experts from online gambling and the video game industries, and esports. The Company holds licenses to conduct online gambling and 18+ gaming on a global basis in Curacao, Kingdom of the Netherlands and the Kahnawake Gaming Commission in Canada. The Company maintains offices in Antigua, Curacao and Warsaw, Poland. Esports Entertainment common stock is listed on the OTCQB under the symbol GMBL. For more information visit www.esportsentertainmentgroup.com.
This press release is available on our Online Investor Relations Community for shareholders and potential shareholders to ask questions, receive answers and collaborate with management in a fully moderated forum at https://agoracom.com/ir/EsportsEntertainmentGroup
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The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
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SOURCE: Esports Entertainment Group, Inc.