Esports Entertainment plunges on stock-and-warrants offering
28/02/2022 13:11
** Esports Entertainment Group GMBL.O shares plunge ~40%
premarket after co raises equity
** Esports betting firm priced 15 mln shares, along with
warrants to buy 15 mln shares, for $15 mln raise urn:newsml:reuters.com:*:nNFCbYKQHc
** 5-yr warrants immediately exercisable at price of $1/sh
** Co plans to use net offering proceeds for working
capital, partially repay outstanding senior convertible note
** GMBL has ~25.7 mln shares outstanding and ~21 mln shares
of free float, per Refinitiv data
** Stock last Weds dropped 58.2% to $1.24 after co reported
https://esportsentertainmentgroup.com/esports-entertainment-group-reports-fiscal-2022-second-quarter-revenue-of-14-5-million
qtrly rev of $14.5 mln, well below Street est of $21.3 mln, per
Refinitiv data, and wider-than-expected loss
** Shares have lost ~94% over the past year
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))