The Electronic Entertainment Group (EEG) has inked a securities acquisition agreement that will enable the company to finalize a private placement of unsecured Series D convertible preferred stock with institutional investors.
EEG anticipates generating $4 million (£3.2 million/€3.6 million) from the transaction, following the deduction of anticipated underwriting fees.
The agreement also grants EEG the chance to raise extra funds, as investors will possess the right to acquire common stock and supplementary Series D convertible preferred stock.
The deal is anticipated to conclude in the initial week of May, contingent upon customary closing stipulations.
Previously, EEG reached an accord with Alto Opportunity Master Fund in April to exchange its debt for company shares. This transaction was finalized on April 28.
EEG Chief Executive Officer Alex Eagleman stated, “We are appreciative of the additional investment in the company, which not only bolsters our cash position but also complements the previously announced transaction to convert the company’s $15 million senior convertible notes into unsecured Series C convertible preferred stock.” “As a consequence of these transactions, we anticipate significantly enhancing our financial statement.”
Eagleman further mentioned that EEG is presently seeking to expand its reach in its targeted markets, encompassing esports.
Furthermore, we have slashed over $4 million in yearly operational expenditures, and we anticipate decreasing over $42 million in debt and other obligations by the end of this year. Consequently, we are now setting the stage for the company to implement our new, intensely focused and capital-efficient business strategy, aiming for the expanding e-gaming, esports and e-simulators market.
Also in April, Eagleman declared plans to sell EEG and broaden its consumer-facing product range.
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