Chicago, Nov. 16 – Esports Entertainment Group Inc. entered into an underwriting agreement for a firm commitment public offering for $8 million, or 800,000 shares, of $10-par 10% series A cumulative redeemable convertible preferred stock due 2026, according to an 8-K filing with the Securities and Exchange Commission.
The initial announcement said the company was planning to sell $15 million, or 1.5 million shares.
Similarly, the 45-day greenshoe to purchase an additional $1.2 million, or 120,000 shares, was downsized from an initially announced 225,000 shares.
Maxim Group LLC and Joseph Gunnar & Co., LLC are bookrunners for the registered offering.
The convertible preferred stock is freely convertible at conversion price of $17.50.
It is callable on or after Jan. 1, 2023 at a redemption price of $11.00.
The preferreds are subject to a mandatory redemption at $11.00 per share upon a change of control.
The preferred stock will be listed on the Nasdaq under the ticker “GMBLP.”
Proceeds will be used to make the second payment in the securities purchase agreement entered into with Gameday Group plc and for general corporate purposes.
Esports Entertainment is a Hoboken, N.J.-based e-sports and online gambling company.
| Issuer: | Esports Entertainment Group Inc.
|
| Securities: | Series A cumulative redeemable convertible preferred stock
|
| Amount: | $8 million, or 800,000 shares
|
| Greenshoe: | $1.2 million, or 120,000 shares
|
| Maturity: | 2026
|
| Bookrunners: | Maxim Group LLC and Joseph Gunnar & Co., LLC
|
| Dividend: | 10%
|
| Price: | Par of $10.00
|
| Conversion price: | $17.50
|
| Call options: | Callable on or after Jan. 1, 2023 at $11.00
|
| Pricing date: | Nov. 11
|
| Settlement date: | Nov. 16
|
| Distribution: | Public
|
| Stock symbol: | Nasdaq: GMBLP
|
| Stock reference price: | $6.47 on Nov. 16
|
| Market capitalization: | $142.24 million
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