Esports Entertainment Group (EEG) has entered into a securities purchase agreement with an institutional investor, aiming to secure a private placement of unsecured series D convertible preferred stock.
The strategic transaction is expected to raise $4m in net proceeds for the company after estimated offering expenses. In addition to the initial capital, the agreement provides EEG with an opportunity to secure further funding.
The institutional investor will have the option to receive a warrant to purchase shares of common stock and additional shares of series D convertible preferred stock. The deal is set to close during the first week of May, subject to closing conditions being met.
