(PRESS RELEASE) -- FansUnite Entertainment Inc. announced a non-brokered private placement of units of the Company (the “Units”) at a price of $0.08 per Unit for aggregate gross proceeds of $2,000,000 (the “Offering”).
In connection with the Offering, Tekkorp Capital (“Tekkorp”), an investment firm that advises and invests in innovative public and private companies within the global digital gaming industry, has agreed to acquire 13,750,000 Units of the financing.
“We are active investors in the sports and gaming industry and look for great businesses with strong leadership in market segments we like,” said Matt Davey, Founder & Chairman of Tekkorp Capital. “Scott and his team at FansUnite tick all the boxes for us and we are happy to support in their journey to grow the company and shareholder value for all investors.”
Each Unit will consist of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant of the Company (each, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share (each a “Warrant Share”) at a price of $0.12 per Warrant Share for a period of 36 months after the closing date of the Offering.
“This private placement offers us an opportunity to work with a strategic investor group consisting of top executives who have helped build and grow some of the largest gaming companies globally,” said Scott Burton, CEO of FansUnite. “They have expressed a strong interest to support our strategy in achieving our profitability and growth targets. To date, we have made great strides in maximizing cost efficiencies while executing initiatives to improve our top and bottom line.”
It is anticipated that the net proceeds from the Offering will be used for general corporate working capital purposes. The Company may pay certain finders a fee in connection with the sale of Units to purchasers introduced to the Company by such finders.
The closing of the Offering may occur in one or more tranches, the first of which is expected to close on or about 9 March 2023, and subsequent tranche(s) as may be agreed by the Company and the subscribers. Closing of the Offering is subject to receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange, and will occur within 45 days from the date hereof.There is an offering document related to this Offering dated March 6, 2023 that can be accessed under the Company’s profile at www.sedar.com and at https://fansunite.com/. Prospective investors should read this offering document before making an investment decision. The Company may increase the size of the Offering to the maximum amount permitted by the ?Listed Issuer Financing Exemption (as defined below) in the context of the market.?
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”), the Offering is being made to purchasers resident in all provinces and territories of Canada (except Quebec) and certain foreign jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the “Listed Issuer Financing Exemption”). The securities offered under the Listed Issuer Financing Exemption will not be subject to a hold period pursuant to applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the “United States” or to “U.S. persons” (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.