Esports Entertainment closes $2 million private placement

CEO Grant Johnson described the financing as a ‘major milestone’ and said it would allow the company to accelerate its growth plans

Popular online gambling company Esports Entertainment Group Inc (OTCQ:GMBL) announced Monday that it had closed a private placement in October for $2.2 million, before deducting agents fees and expenses.

The company said it issued senior secured convertible promissory notes bearing interest at 5% per annum. The notes, with a principal value of $2.2 million were purchased at a 10% discount for $2 million and mature 12 months from the closing date.

"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,” said Esport Entertainment CEO Grant Johnson.

Noteholders would be entitled after the requisite 144-day holding period, to convert all or any amount of the principal face amount of the notes into common shares at a price of $0.60 per share. A 100% warrant coverage would be exercisable for a period of three years post issuance at an exercise price of $0.75 per share.

“This financing will allow us to 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," he added.

The Esports Entertainment Group is a licensed online gambling company with a specific focus on e-sports wagering and 18-years old plus gaming.

Shares of Esports climbed 1.5% to $0.69 in morning trade.

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