Esports Entertainment Group Inc (NASDAQ:GMBL) is plunging Monday after the company announced the pricing of a $15 million public offering of common stock and warrants.
Each share of common stock is being sold in combination with one common warrant at a combined effective offering price of $1. The common warrants will be immediately exercisable at $1 per share and will expire five years from the date of issuance.
The offering is expected to close on or around March 2. Esports Entertainment Group intends to use the net proceeds from the offering for working capital and to repay a portion of its outstanding senior convertible note.
Esports Entertainment Group is a development-stage online gambling company focused purely on esports.
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GMBL Price Action: Esports Entertainment Group has traded as high as $24.48 over a 52-week period. It's making new lows Monday morning.
The stock was down 39.2%, trading at 71 cents at time of publication.
Photo: Timrael from Pixabay.
