On September 15th, Esports Entertainment Group Inc. announced the pricing of its previously held public offering of 30 million shares of common stock. Each share of common stock will be sold with an accompanying warrant that gives the offering an effective price of $0.25/share. As a result, the gross proceeds of this offering will be about $7.5 million.
This public offering reportedly closed around September 19th, 2022. The proceeds will be used for working capital and to also repay a portion of EEG’s outstanding senior convertible notes.
Esports Entertainment Group has had plenty of issues over the last six months. On March 28th, 2022, one share of stock in GMBL was worth $0.74. However, as of 2:15 PM EST on September 27th, 2022, the company’s stock price has fallen to $0.14.
EEG is a full-service esports and online betting organization that focuses on igaming, games, and technology. the company currently has offices in New Jersey, Estonia, Malta, and the United Kingdom.
The Profit‘s Take:
The stock is down 98% over the last year. It’s going to take real innovation and thoughtfulness around a gaming/esports content strategy to succeed here. Going through the bankruptcy process would provide for a good reset as well. This is not as simple as getting a casino license, creating a website, and hoping customers come.
(All information was provided by Google Finance, Seeking Alpha, and Yahoo!)
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