Esports Entertainment Stock Plummets After Raising $15M Via Equity Offering

Esports Entertainment Group Inc (NASDAQ:GMBL) has priced its underwritten public offering of 15 million shares and accompanying warrants to buy 15 million shares.
Each share of common stock is being sold together with one common warrant at a combined effective offering price of $1.00.
The common warrants will be immediately exercisable at $1.00 per share of common stock and will expire five years from the date of issuance.
Esports Entertainment has granted the underwriters a 45-day option to purchase up to an additional 2.25 million shares of common stock and/or additional warrants to purchase up to 2.25 million shares.
The company expects the offering to close on or about March 2, 2022.
The gross proceeds of the offering are expected to be $15.0 million.
Price Action: GMBL shares are trading lower by 35.3% at $0.75 in premarket on the last check Monday.