TMCnet News
Mobile Global Esports Announces $5.0 Million Private Placement Priced At-the-MarketWESTPORT, CT and GOREGAON EAST, MUMBAI, INDIA, Sept. 21, 2022 (GLOBE NEWSWIRE) -- Mobile Global Esports Inc. (NASDAQ:MGAM), the mobile esports and social platform company that holds trademark and IP rights for collegiate esports tournaments, teams and players in India, today announced that it has entered into a securities purchase agreement with an institutional investor for the issuance and sale of 1,886,793 shares of its common stock and warrants to purchase up to an aggregate of 1,886,793 shares of its common stock at a combined purchase price of $2.65 per share and accompanying warrant in a private placement priced at-the-market under Nasdaq rules. The offering is expected to close on or about September 23, 2022, subject to the satisfaction of customary closing conditions. The aggregate gross proceeds to the Company from the private placement is expected to be approximately $5.0 million. The Company intends to use the net proceeds from the offering to develop championship esports events in India and its game platform. WestPark Capital, Inc. is acting as the exclusive placement agent in the offering. The warrants to be issued in the offering will be exercisable immediately upon issuance at an exercise price of $2.90 per share and will expire five years from the effectiveness date of the regsitration statement as described below. Pursuant to a registration rights agreement with the investor, the Company has agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the unregistered shares of common stock and the shares of common stock issuable upon exercise of the warrants no later than thirty days after execution of the securities purchase agreement and to use best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than ninety days after execution of the securities purchase agreement. The unregistered shares of common stock and warrants sold in the offering described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the Act”) and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Act or applicable state securities laws. Accordingly, the shares of common stock, the warrants and the shares of common stock underlying the warrants may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any 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 any such state or jurisdiction. About Mobile Global Esports Inc. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATMENTS Media Contact: Rich Schineller, 941.780.8100, [email protected] ### |