- Esports Mogul (ESH) has received binding commitments to undertake an $8 million placement
- All up, 800 million fully-paid ordinary shares will be issued to institutional shareholders at one cent each
- Additionally, participants will receive a free attaching option for every two shares subscribed for with an exercise price of two cents and expiry on October 31, 2022
- The placement will be completed in two phases, with phase one issuing 500 million shares to raise $5 million
- Phase two, which is subject to shareholder approval, will issue up to 300 million shares and 150 million attaching options to raise $3 million
- Esports will use the funds to fast-track transformation of its tournament platform, accelerate monetisation strategies, and secure additional partnerships
- Esports is down 3.85 per cent on the market this morning, trading for 1.3 cents each
Esports Mogul (ESH) has received binding commitments to undertake an $8 million placement.
The online tournament platform entered back-to-back trading halts at the beginning of the week but did not disclose how much it intended to raise.
All up, 800 million fully-paid ordinary shares will be issued to institutional shareholders at one cent each.
This price represents a 23.08 per cent discount to Esports’ 15-day volume-weighted average price.
Additionally, participants will receive a free attaching option for every two shares subscribed for with an exercise price of two cents and expiry set for October 31, 2022.
The placement will be completed in two phases, with phase one issuing 500 million shares to raise $5 million.
Shares under this phase are expected to be issued on or before October 23.
Phase two, which is subject to shareholder approval, will issue up to 300 million shares and 150 million attaching options to raise $3 million.
Esports will use the funds to fast-track transformation of its tournament platform, accelerate monetisation strategies, and secure additional partnerships.
“We’re pleased to have received such significant support for this placement, raising a total of $8 million,” Chairman Gernot Abl said.
“We now look forward to the next 12 months as we seek to capitalise on our world-class technology platform, further delivering against our monetisation strategy around brands and continuing to secure partnerships with game publishers for both PC and mobile,” he added.
Esports is down 3.85 per cent on the market this morning, trading for 1.3 cents each at 11:23 am AEDT.