FansUnite Entertainment, a sports and entertainment company, has announced it will receive a private placement payment from the strategic investment company Tekkorp Capital. The company has set aside a non-brokered private placement of units of the company at a price of $0.08 per unit for gross proceeds of $2m.
Tekkorp Capital, a leading investment firm in the digital gaming industry, has agreed to acquire 13,750,000 Units. Scott Burton, CEO of FansUnite, said the placement will help the company achieve its profitability and growth targets.
Burton said: “This private placement offers us an opportunity to work with a strategic investor group consisting of top executives who have helped build and grow some of the largest gaming companies globally.
“They have expressed a strong interest to support our strategy in achieving our profitability and growth targets. To date, we have made great strides in maximizing cost efficiencies while executing initiatives to improve our top and bottom line.”
Each unit consists of one common share and one warrant at a price of $0.08 and $0.12, respectively. The net proceeds from the offering will be used for general corporate working capital purposes. The closing of the offering may occur in one or more tranches and is subject to regulatory approval.
It is being made to purchasers resident in all provinces and territories of Canada (except Quebec) and certain foreign jurisdictions. The securities will not be subject to a hold period pursuant to applicable Canadian securities laws.
Tekkorp Founder and Chairman Matt Davey commented: “We are active investors in the sports and gaming industry and look for great businesses with strong leadership in market segments we like.
“Scott and his team at FansUnite tick all the boxes for us and we are happy to support in their journey to grow the company and shareholder value for all investors.”
