SharpLink Gaming Shares Plunge On Raising $10M Via Direct Equity Offering

  • SharpLink Gaming Ltd SBET has entered into a securities purchase agreement with an institutional investment firm, which is an existing company shareholder.
  • The investor will purchase 1.4 million of the company's ordinary shares at $3.75 per share and pre-funded a warrant to purchase up to 1.25 million ordinary shares at a funding amount of $3.74 per share and an exercise price of $0.01 per share, for gross proceeds of $10 million.
  • The offer price represents a 9% discount to Sharplink's last close on November 16, 2021.
  • SharpLink expects the net proceeds from the offering to be about $9.9 million and to use it for supporting technology and business development initiatives.
  • The offering is expected to close on or about November 19, 2021.
  • In a concurrent private placement, the investor will purchase a warrant to purchase an additional 2.66 million shares at an exercise price of $4.50 per share, which, if exercised, will result in gross proceeds of $12.15 million.
  • Price Action: SBET shares are trading lower by 11.4% at $3.65 on the last check Wednesday.
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