WestPark Capital Announces Closing of $5 Million Private Placement Priced at-the-Market for Mobile Global Esports (NASDAQ:MGAM)

Rhea-AI Summary

WestPark Capital announced the closure of a private placement for Mobile Global Esports Inc. (NASDAQ:MGAM), involving unregistered shares and warrants. The funds will be used to develop championship esports events and enhance their gaming platform in India. The offering was conducted under Regulation D, exclusively for accredited investors. The shares and warrants sold are not registered under the Securities Act, limiting their sale in the U.S. without appropriate exemptions.

Positive

• Successful closure of a private placement for Mobile Global Esports Inc.
• Funds will support development of esports events in India.
• Opportunity for growth in the esports sector.

Negative

• Unregistered shares and warrants increase investment risk.
• Limited to accredited investors, potentially restricting capital access.

LOS ANGELES--(BUSINESS WIRE)-- WestPark Capital, Inc., a full-service investment bank and securities broker-dealer, today announced the closing of a private placement priced at-the-market for Mobile Global Esports Inc. (NASDAQ:MGAM), a mobile esports company with an esports and social platform that includes proprietary compression technology. In addition, the company holds trademark and IP rights for collegiate esports tournaments and players in India. The company intends to use the net proceeds from the offering to develop championship esports events in India and its game platform.

WestPark Capital, Inc. was the Exclusive Placement Agent for the offering.

The unregistered shares of common stock and warrants sold in the offering described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act") and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Act or applicable state securities laws. Accordingly, the shares of common stock, the warrants and the shares of common stock underlying the warrants may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors.

About WestPark Capital, Inc.

WestPark Capital is a full-service investment bank focused on emerging growth sectors such as healthcare, software, technology, biotechnology, financial services, manufacturing, consumer products, media and telecom industries, among other categories. WestPark Capital provides a comprehensive range of corporate finance services, including initial public offerings, follow-on offerings, private placements, CMPOs, RDs, ATM, SIPOs and corporate finance advisory services. Additional information about WestPark Capital is available at www.wpcapital.com or at info@wpcapital.com.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20220930005062/en/

WestPark Capital, Inc.

Jason Stern

info@wpcapital.com

Source: WestPark Capital, Inc.

FAQ

What is the recent development for Mobile Global Esports Inc. (MGAM)?

Mobile Global Esports Inc. (NASDAQ:MGAM) closed a private placement to fund esports events in India.

What will Mobile Global Esports Inc. do with the funds raised from the private placement?

The funds will be used to develop championship esports events and enhance their gaming platform in India.

Who facilitated the private placement for Mobile Global Esports Inc.?

The private placement was facilitated by WestPark Capital, Inc.

What type of investors can participate in the private placement of MGAM?

The private placement was offered exclusively to accredited investors.

What are the implications of the shares being unregistered for Mobile Global Esports Inc.?

Unregistered shares may not be sold in the U.S. unless registered or exempted, increasing investment risk.