SharpLink Gaming Shares Plunge On Raising $10M Via Direct Equity Offering - SharpLink Gaming (NASDAQ:SBET)

SharpLink Gaming Ltd SBET has entered into a securities purchase agreement with an institutional investment firm, which is an existing company shareholder.
The investor will purchase 1.4 million of the company's ordinary shares at $3.75 per share and pre-funded a warrant to purchase up to 1.25 million ordinary shares at a funding amount of $3.74 per share and an exercise price of $0.01 per share, for gross proceeds of $10 million.
The offer price represents a 9% discount to Sharplink's last close on November 16, 2021.
SharpLink expects the net proceeds from the offering to be about $9.9 million and to use it for supporting technology and business development initiatives.
The offering is expected to close on or about November 19, 2021.
In a concurrent private placement, the investor will purchase a warrant to purchase an additional 2.66 million shares at an exercise price of $4.50 per share, which, if exercised, will result in gross proceeds of $12.15 million.
Price Action: SBET shares are trading lower by 11.4% at $3.65 on the last check Wednesday.