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Esports Entertainment Group, Inc. (NASDAQ: GMBL) (the “Company”) today announced the pricing of its previously announced underwritten public offering of 30,000,000 common shares and accompanying warrants for the purchase of 30,000,000 common shares. Each common share is being sold together with one common warrant at a combined effective offering price of $0.25. The common warrants are exercisable immediately at a price of $0.25 per common share and will expire five years from the date of issue. The Common Shares and the Common Warrants accompanying them may only be purchased together under the Offer, but will be issued separately and will be immediately severable upon issuance. Esports Entertainment Group has granted underwriters a 45-day option to purchase up to 4,500,000 additional common shares and/or additional warrants to purchase up to 4,500,000 common shares.
Maxim Group LLC and Joseph Gunnar & Co., LLC are acting as bookrunners for the offering.
Gross proceeds from the offering are expected to be approximately $7.5 million before deducting underwriting discounts and commissions and estimated offering costs. This offering is expected to close on or about September 19, 2022, subject to customary closing conditions. Esports Entertainment Group intends to use the net proceeds of this offering for working capital and to redeem a portion of its outstanding senior convertible note.
A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission (SEC) effective February 5, 2021. The offering is made by way of written prospectus only and of a prospectus supplement that will form part of the registration statement. A definitive prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Alternatively, when available, electronic copies of the final prospectus supplement and accompanying prospectus may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022, at (212) 895-3745.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, and there will be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. , prior to registration or qualification. under the securities laws of such state or territory.