Esports Entertainment Group Announces Secured Note and Amendments to its Convertible Preferred Stock
March 13 2024 - 5:00PM
Esports Entertainment Group, Inc. (OTC Pink: GMBL) (OTC Pink:
GMBLP) (OTC Pink: GMBLW) (OTC Pink: GMBLZ) (“Esports
Entertainment”, “EEG”, or the “Company”), a leading, global
iGaming company and business-to-business (B2B) esports content and
solutions provider, today announced it has entered into a note
purchase agreement, dated March 7, 2024, with the holder (the
“Holder”) of its Series C Convertible Preferred Stock and Series D
Convertible Preferred Stock, pursuant to which the Company issued
the Holder a secured promissory note (the “Secured Note”) for
approximately $1.42 million in cash and certain amendments to the
terms of the Series C Convertible Preferred Stock and Series
Convertible D Preferred Stock, repayable in 2 years with an
interest rate of 10% per annum recorded in-kind by adding the
amount of accrued interest to the outstanding principal balance of
the Secured Note on the last Business Day of each calendar quarter.
The amendments to the Series C Convertible
Preferred Stock and the Series D Convertible Preferred Stock
Certificate of Designations include a six month standstill on
certain conversions, limits to conversions thereafter, freeze on
dividends for two years through the new maturity date of March 7,
2026, and an allowance for the Company to raise up to $10 million
that could be used for other operational purposes and not for
repayment of the preferred stock.
Alex Igelman, CEO of Esports Entertainment
Group, stated, “I am also pleased to report that we have recently
received an infusion of non-dilutive, non-convertible debt
financing, which we feel is a strong validation of our underlying
vision for the future of the Company. At the moment, we are firmly
focused on continuing to reduce corporate expenses while
simultaneously driving growth and profitability. The Secured Note
provides us greater financial flexibility, as we continue to reduce
costs, improve our balance sheet, enhance our cash flow, and
execute on our growth initiatives within the iGaming, venue
management and e-simulator markets. We also successfully
restructured the existing preferred stock by implementing a
six-month standstill on certain conversions and resale of shares of
common stock in relation thereof, which we believe illustrates
confidence in the management team and the long-term outlook for the
business.”
About Esports Entertainment Group
Esports Entertainment Group is a global
MGA-licensed, “esports-focused” iGaming B2C operator and a
US-focused B2B provider of esports solutions. The Company owns and
operates the world’s leading esport venue management system,
currently deployed in over 1000 global locations, including more
than 200 colleges and universities. The Company’s strategy is to
capitalize on the multi-billion-dollar market for esports and
esports wagering by leveraging its leading position in the
industry. The Company is also targeting the rapidly growing market
for short-form esports wagerable content, which features
competitive, short-cycle head-to-head leagues that are optimized
for betting. In addition to its plans to distribute esports
content, the Company currently provides B2C-focused wagering
through its MGA-licensed suite of brands. For additional
information about the Company, please visit
www.esportsentertainmentgroup.com.
Forward-Looking Statements
The information contained herein includes
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
can be identified by words such as “anticipates,” “believes,”
“estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,”
“will be,” “will continue,” “will likely result,” and similar
expressions. These statements relate to future events or to our
strategies, targeted markets, and future financial performance, and
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, levels of activity, performance,
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. You should not place
undue reliance on forward-looking statements since they involve
known and unknown risks, uncertainties and other factors which are,
in some cases, beyond our control and which could, and likely will,
materially affect actual results, levels of activity, performance
or achievements. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in our
most recent Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q, and those discussed in other documents we
file with the SEC including, the timing of deregistration of our
securities, the timing of our listing on the OTCQB® Venture Market
of the OTCMarkets, our obligations under our outstanding preferred
stock, as amended, the settlement agreement with the holder of our
Series C Preferred Stock and Series D Preferred Stock, and our
ability to continue as a going concern. Any forward-looking
statement reflects our current views with respect to future events
and is subject to these and other risks, uncertainties and
assumptions relating to our operations, results of operations,
growth strategy and liquidity. We assume no obligation to publicly
update or revise these forward-looking statements for any reason,
or to update the reasons actual results could differ materially
from those anticipated in these forward-looking statements, even if
new information becomes available in the future, unless required by
law. The safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995 protects
companies from liability for their forward-looking statements if
they comply with the requirements of such Act.
Contact:
Tel: 356 2713 1276Email: ir@esportsentertainmentgroup.com
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