EBET, Inc. Announces $3.5 Million Private Placement Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

EBET, Inc. (NASDAQ: EBET) announced on June 7, 2022, a private placement agreement to issue 977,657 shares of common stock and warrants to investors, priced at $3.58 per share. This move is expected to generate gross proceeds of approximately $3.5 million before fees. The closing of the transaction is anticipated by June 15, 2022. The company will use the funds for general corporate purposes. The securities will not be registered under the Securities Act, limiting their sale in the U.S. without an effective registration statement.

Positive

• None.

Negative

• Funds raised through the private placement may dilute existing shareholders.
• The placement is not registered under the Securities Act, limiting future sale of securities.
• Potential risks associated with the expected proceeds utilization.

LAS VEGAS, June 10, 2022 /PRNewswire/ -- EBET, Inc. (NASDAQ: EBET) ("EBET" or the "Company"), a leading global provider of advanced wagering products and technology, announced today that on June 7, 2022 it entered into securities purchase agreements with several institutional and accredited investors to issue, in a private placement priced at-the-market under Nasdaq rules, 977,657 shares of common stock and warrants to purchase up to an aggregate of 977,657 shares of common stock, at a purchase price of $3.58 per share of common stock and associated warrant, for expected gross proceeds to EBET of approximately $3.5 million, before deducting fees and other offering expenses payable by the Company. The warrants will have an exercise price of $5.00 per share of common stock, 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 June 15, 2022, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the private placement for general corporate purposes.

The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and the securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. 

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About EBET, Inc.

EBET develops award-winning, groundbreaking and engaging wagering products for bettors around the world. The company is focused on bringing better odds and technology solutions to cater to the Millennial and Gen-Z demographics. It has an expanding portfolio of intellectual property with patents pending around odds modeling simulation, an electronic sports betting exchange system, live streaming odds integration and enhancing modeling probabilities in multi-player games. EBET operates online sportsbook and casino brands Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, GenerationVIP and Gogawi, which have over 1.25 million deposited customers in more than 15 countries. The company recently was awarded Esport Product of the Year at the 2021 SiGMA Europe and 2022 SiGMA Asia Awards, and its brand Karamba received SBC's award for Innovation in Casino & Gaming Entertainment. EBET, Inc. is listed on the Nasdaq under the symbol EBET (CUSIP 278700109). EBET, Inc. was previously Esports Technologies Inc. The name changed on May 5, 2022, to better reflect the company's business and mission. 

For more information, visit: https://ebet.gg/.

Forward-Looking Statements: This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, statements related to the completion of the private placement, the satisfaction of customary closing conditions related to the private placement and the intended use of net proceeds from the private placement. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results or outcomes may prove to be materially different from the expectations expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed in the Company's filings with the Securities and Exchange Commission, including as set forth in Item 1A. "Risk Factors" in our most recently filed Form 10-K filed with the Securities and Exchange Commission and updated from time to time in our Form 10-Q filings and in our other public filings with the SEC. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

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SOURCE EBET Inc

FAQ

What is the recent financing action taken by EBET on June 7, 2022?

EBET entered into a private placement agreement to issue 977,657 shares of common stock at $3.58 per share, expected to raise approximately $3.5 million.

When is the expected closing date for EBET's private placement?

The closing of the private placement is expected on or before June 15, 2022.

What are the terms of the warrants issued by EBET?

The warrants have an exercise price of $5.00 per share and will be exercisable six months after the offering closes.

How will EBET utilize the proceeds from the private placement?

The company intends to use the net proceeds for general corporate purposes.

What risks are associated with EBET's recent private placement?

The securities are not registered under the Securities Act, which limits their sale in the U.S. without proper registration.