- GameSquare Esports (GSQ) closed its latest non-brokered private placement, after raising C$150,000 in gross proceeds
- The company originally hoped to raise up to $250,000 through the sale of one million units, but fell slightly short
- GameSquare Esports conducted the placement for subscribers who were unable to participate in financing for its recent reverse takeover
- The company plans to use the proceeds of the offering for general corporate purposes
- GameSquare Esports is up 6.67 per cent and is currently trading for $0.40 per share
GameSquare Esports (GSQ) has closed its latest non-brokered private placement, after raising C$150,000 in gross proceeds.
Through the offering, the company sold 600,000 units at a price of $0.25 per unit. GameSquare originally hoped to raise up to $250,000 through the sale of up to 1 million units, but fell slightly short.
This may be because the company closed a prior private placement only last month, as part of financing its reverse takeover of Magnolia Colombia. In that capital raise, GameSquare sold 12 million units at $0.25 each, to raise aggregate gross proceeds of around $3 million.
The considerably larger and more successful offering to fund the RTO transaction was heavily oversubscribed. This prompted the company to hold a second, follow-up placement for those who could not participate the first time.
Each unit issued through the company’s latest offering contains one common share in GameSquare Esports and one common share purchase warrant.
Each warrant allows the holder to acquire one more common share in the company at an exercise price of $0.40. The warrants issued through this private placement are exercisable within 24 months of the issuance date.
All securities issued through the offering will be subject to a statutory hold period of four months, which expires on March 18, 2021.
With most major concerns taken care of through the company’s previous financing, GameSquare will use proceeds of this latest offering for general corporate purposes.
GameSquare Esports is up 6.67 per cent and trading for $0.40 per share, as of 9:50am EST.