Ebet, the esports betting technology provider that recently rebranded from Esports Technologies, has announced a private placement in an effort to raise up to $3.5m (£2.9m/€3.3m).
Under the terms of securities purchase agreements brokered with certain institutional and accredited investors, Ebet will issue 977,657 shares of common stock and warrants to purchase up to a further 977,657 shares of common stock.
Shares will be priced at purchase price of $3.58 per share of common stock and associated warrant, for expected gross proceeds of approximately $3.5m before fees and other offering expenses in line with Nasdaq rules.
The warrants will have an exercise price of $5.00 per share of common stock and will be exercisable six months from the closing of the offering for a period of five years from the closing date.
The closing of the private placement is expected to occur on or before 15 June, subject to the satisfaction of customary closing conditions, with net proceeds to be used for general corporate purposes.
The placing comes after Ebet last month reported a 166% quarter-on-quarter increase in revenue for the second quarter of its 2022 financial year. Revenue for the three months to 31 March 2022 was $19m.
Ebet last month also completed its rebrand from Esports Technologies to better reflect its business and focus on providing technology and wagering services.