Esports betting operator Esports Entertainment Group has announced that it secured approximately $4.4m (£3.5m/€3.9m) from the exercise of warrants, further strengthening its financial position as it prepares to execute its expansion strategy.
The public offering of securities, which began on14 April, saw investors exercise a total of 1,029,393 warrants at a price of $4.25 per share, for gross proceeds of $4.4m since 22 May.
Combined with a further $1.9m in funding from a public offering of securities announced on 26 May, Esports Entertainment said it received an aggregate of $6.2m from the exercise of warrants, as of 8 June. This followed an uplisting to the Nasdaq stock exchange in April, and an $8.4m public offering.
“This announcement significantly bolsters our financial strength and resources necessary to execute our business plan,” Esports Entertainment chief executive Grant Johnson said. “The continued support and confidence of our valued shareholders is deeply appreciated as we aggressively pursue our growth strategy in 2020 and beyond.”
Last month, Esports Entertainment Group also announced that it had formed a new US-facing subsidiary, GMBL New Jersey, with the intention of making its first application for a betting license in the state in the “near future”.
Also in May, Esports Entertainment Group secured a gaming service licence from the Malta Gaming Authority (MGA). The licence is valid for 10 years and enables Esports Entertainment to offer online pool betting to players.
In addition, Esports Entertainment recently signed a binding letter of intent to acquire LHE Enterprises, the holding company of online betting and gaming operator Argyll Entertainment.
While terms of the deal were disclosed, Johnson said that with Argyll generating annual revenue of around $12.0m, the acquisition would have “a major positive impact” on the business.